Optimal ordering and pricing policy with supplier quantity discounts and price-dependent stochastic demand Jianmai Shi a b , Guoqing Zhang b & Kin Keung Lai c a School of Information System and Management, National University of Defense Technology, Changsha, Hunan, China b Department of Industrial and Manufacturing Systems Engineering, University of Windsor, Windsor ON, Canada c Department of M...

This paper studies how differences in risk exposure and risk attitude affect network configuration. Theory is presented for general utility functions and their mean-variance approximations and illustrated with networks featuring inventory substitution and commonality, or resource sharing and flexibility. When faced with increased risk exposure, risk-neutral newsvendors change resource levels pr...

This paper considers inventory models with advance demand information and flexible delivery. Customers place their orders in advance, and delivery is flexible in the sense that early shipment is allowed. Specifically, an order placed at time t by a customer with demand leadtime T should be fulfilled by period t+T ; failure to fulfill it within the time window [t, t+T ] is penalized. We consider...

In this paper we consider a single period multi-product inventory problem with stochastic demand, setup cost for production, and one-way product substitution in the downward direction. We model the problem as a two-stage integer stochastic program with recourse where the first stage variables determine which products to produce and how much to produce, and the second stage variables determine h...

This article addresses the development of an integrated supplier selection and inventory control problems in supply chain management by developing a mathematical model for a multi-echelon system. In particular, a buyer firm that consists of one warehouse and N identical retailers wants to procure a product from a group of potential suppliers, which may require different price, ordering cost, le...

This paper proposes a hybrid policy for a stochastic inventory system facing regular demand and surge demand. The combination of two different demand patterns can be observed in many areas, such as healthcare inventory and humanitarian supply chain management. The surge demand has a lower arrival rate but higher demand volume per arrival. The solution approach proposed in this paper incorporate...

We consider a perishable inventory system that operates under stochastic demand, constant lifetime and a constant lead time. The system employs a continuous review ðr;Q Þ inventory control policy where unfilled demands are lost. We investigate the properties of the cost function and present an approximation procedure to find the parameters r and Q that minimize the total cost. We then conduct a...

In an attempt to reduce cost while maintaining good customer service, some of the leading manufacturers in the computer industry are delaying product differentiation (by exploiting component commonality) while managing broader product lines. In an environment where demands are stochastic, it seems a good strategy to store inventory in the form of semi-finished products (vanilla boxes) that can ...

The combination of inventory management and vehicle routing decisions yields a difficult combinatorial optimization problem called the Inventory-Routing Problem (IRP). This problem arises when both types of decisions must be taken jointly, which is the case in vendor-managed inventory systems. The IRP has received significant attention in recent years. Several heuristic and exact algorithms are...