The stochastic inventory models analyzed in this paper explore the problem of lead time associated with setup cost reductions for the continuous review and periodic review inventory models. For these two models with a mixture of backorders and lost sales, we respectively assume that their mean and variance of the lead time demand and protection interval (i.e., lead time plus review period) dema...

Consolidating orders in inventory management increases order size, exploits economy of scale, and potentially lowers costs. But it is not always apparent how to divide up the resulting lower costs. The analysis of cost allocation in different inventory settings has a name and is now referred to as Inventory Games. This work examines collaborative procurement for the EOQ model for multiple items...

Successful implementation of an inventory optimization solution requires significant effort and can pose certain risks to companies implementing such solutions. Depending on the complexity of the requirements, the solution may also involve a substantial IT investment. In this paper, we present a cost-effective solution for inventory optimization that can be useful for small and mediumsized busi...

This work focus mainly on a specific question: for an adopted contract, what are the decisions to be taken for each company taking into account his own interests, knowing that these decisions influence the behavior of the other company and in consequence the coordination of the chain. This may be also explained using the terms of Cachon (2004) who clearly presents this situation: “Optimal suppl...

In this paper, we considered a deterministic inventory model with time-dependent demand and time-varying holding cost where deterioration is time proportional. The model considered here allows for shortages, and the demand is partially backlogged. The model is solved analytically by minimizing the total inventory cost. The result is illustrated with numerical example for the model. The model ca...

The inventory routing problem presented in this study is a one-to-many distribution network consisting of a manufacturer that produces multi products to be transported to many geographically dispersed customers. We consider a finite horizon where a fleet of capacitated homogeneous vehicles, housed at a depot/warehouse, transports products from the warehouse to meet the demand specified by the c...