Recently, in Mathematical and Computational Applications Journal Chiu et al. [1] and Chen and Chiu [2] propose an inventory model based on EPQ with rework to determine the replenishment lot size and the number of shipments for a vendor-buyer integrated production-inventory system. They solve the inventory problem by considering both variables as continuous. However, the number of shipments must...

We consider the simultaneous seat-inventory control of a set of parallel flights between a common origin and destination with dynamic customer choice among the flights. We formulate the problem as an extension of the classic multiperiod, single-flight “block demand” revenue management model. The resulting Markov decision process is quite complex, owing to its multidimensional state space and th...

Cost-based filtering is a promising technique able to improve search performance in combinatorial optimization problems. Such a technique has already been successfully applied to stochastic inventory control problems. We focus on the class of production/inventory control problems that considers a single product and a single stocking location, given a stochastic demand with a known non-stationar...

We study an extension of a two-period inventory management problem with positively correlated demands in which the manager’s compensation is partially based on an external, market-based assessment of the firm’s value. As typically the “real” demand is only observed internally in the firm, the manager may ship more than the real demand to downstream customers and report higher than real sales re...

This paper investigates the single period inventory Newsboy problem in a general uncertain environment. Here it is assumed that the uncertainty appears in the market demand of the product. Uncertain demand is used to describe a subjective estimate (not estimated by random/fuzzy demand), linguistically expressed by ‘‘demand is about n’’. Using identification functions of the uncertain variable w...

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This paper deals with the service parts end-of-life inventory problem in a circumstance that demands for service parts are differentiated. Customer differentiation might be due to criticality of the demand or based on various service contracts. In both cases, we model the problem as a finite horizon stochastic dynamic program and characterize the structure of the optimal policy. We show that wh...

In this paper, we study the stochastic transportation-inventory network design problem involving one supplier and multiple retailers. Each retailer faces some uncertain demand. Due to this uncertainty, some amount of safety stock must be maintained to achieve suitable service levels. However, risk-pooling benefits may be achieved by allowing some retailers to serve as distribution centers (and ...

The efficient design/redesign of the logistics network is essential for companies to maintain their competitive advantage. This paper presents a novel non-linear mixedinteger programming model for the multi-product capacitated location routing inventory problem (MPCLRIP), where a two-layer distribution system consisting of depots and customers was studied. The supply decisions such as location ...

We study a joint inventory and pricing problem in a single-stage system with a positive lead time. We consider both additive and multiplicative demand forms. This problem is, in general, intractable due to its computational complexity. We develop a simple heuristic that resolves this issue. The heuristic involves a myopic pricing policy that generates each period’s price as a function of the in...