In managing an inventory network, two approaches to the pooling of stock have been proposed. Reactive transshipments respond to shortages at a location by moving inventory from elsewhere within the network, while proactive stock redistribution seeks to minimize the chance of future stockouts. This paper is the first to propose an enhanced reactive approach in which individual transshipments are...

We consider a periodic-review inventory system with one warehouse and N non-identical retailers. Each location has a positive lead time and orders according to a base-stock policy in fixed time interval. A fixed cost is incurred for each inventory reorder. The warehouse fills the retailers’ orders in the same sequence as the original demand. The objective is to minimize the long-run average sys...

In this paper we consider a repair shop location problem with uncertainties in demand. New repair shops have to be opened at a number of locations. At these local repair shops, customers arrive with broken, but repairable, items. Customers go to the nearest open repair shop. Since they want to leave as soon as possible, an inventory of working items is kept at the repair shops. A customer immed...

In this paper, we examine a discrete-time, periodic-review production environment that assembles several hundred items and that possesses limited, perhaps random production capacity. The demand for a large subset of these items is highly erratic and extremely difficult, if not impossible, to predict accurately. Consequently, a coordinated production-inventory strategy, such as the No B/C Strate...

We consider a single-item, two-echelon spare parts inventory model for repairable parts for capital goods with high down time costs. The inventory system consists of a central warehouse and multiple local warehouses, from where customers are served, and a central repair facility at an external supplier. When a part fails at a customer, his request for a ready-for-use part is immediately fulfill...

We consider a two-stage production-inventory system. Each stage is made of an exponential production server and an output inventory. The downstream inventory faces a Poisson demand and each inventory receives product returns that can be either accepted or rejected. The objective is to find a production/admission policy minimizing the expected discounted costs over an infinite horizon. We consid...

This paper deals with the question of optimal inventory sizes in a compétitive environment in which the demand for a product at a vendor dépends on the inventory level of the product at that vendor relative to the inventories of the same product held by other competing vendors. The total demand for the product at all vendors is assumed to be fixed. This question is examined for two different re...

We consider an assemble-to-order generalized M -system with multiple components and multiple products, batch ordering of components, random lead times, and lost sales. We model the system as an infinite-horizon Markov decision process and seek an optimal control policy, which specifies when a batch of components should be produced and whether an arriving demand for each product should be satisf...