This paper addresses the multi-period single-item inventory lot-sizing problem with stochastic demands under the ‘‘static–dynamic uncertainty’’ strategy of Bookbinder and Tan (Manage. Sci. 34 (1988) 1096). In the static-dynamic uncertainty strategy, the replenishment periods are fixed at the beginning of the planning horizon, but the actual orders are determined only at those replenishment peri...

This paper studies the computation of order up to levels for a stochastic programming inventory problem of a perishable product. Finding a solution is a challenge as the problem enhances a perishable product, fixed ordering cost and non-stationary stochastic demand with a service level constraint. An earlier study [6] derived order-up-to values via an MILP approximation. We consider a computati...

This paper analyzes the design of a distribution network for fast-moving items able to provide differentiated service levels in terms of product availability for two demand classes (high and low priority) using a critical level policy. The model is formulated as a MINLP with chance constraints for which we propose a heuristic to solve it. Although the heuristic does not guarantee an optimal sol...

Correctional agencies face increasing pressure to provide more services for increasing caseloads with fewer resources. The Level of Service Inventory-Revised (LSI-R) is a risk/need assessment instrument that was designed to assist correctional agencies in classifying offenders based upon risk of re-offending, thereby allowing agencies to assign appropriate levels of risk/need and develop interv...

We study the practical production planning problem of a food producer facing a non-stationary erratic demand for a perishable product with a fixed life time. In meeting the uncertain demand, the food producer uses a FIFO issuing policy. The food producer aims at meeting a certain service level at lowest cost. Every production run a set-up cost is incurred. Moreover, the producer has to deal wit...

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...

This paper provides an efficient computational approach to solve the mixed integer programming (MIP) model developed by Tarim and Kingsman (2004) for calculating the parameters of an (R,S) policy in a finite horizon with nonstationary stochastic demand and service level constraints. Given the replenishment periods, we characterize the optimal order-up-to levels for the MIP model and use it to g...

When the online stores and the logistics service providers make decision alone, as trade off phenomenon exists, inventory costs achieve the minimum while transportation costs are not the minimum or the opposite situation occurs. When implementing inventory and transportation integrated optimization, the profit of the whole supply chain and the stores increases, while the profit of the logistics...

The form postponement (FP) strategy is an important strategy for manufacturing firms to utilize to achieve a quick response to customer needs while keeping low inventory levels of finished products. It is an important and difficult task to design a supply chain that uses FP strategy to mitigate the conflict between inventory level and service level. To this end, we develop a two-stage tandem qu...

This paper shows how to set basestock levels in a multiproduct system with setups and random yield. The system is represented by a polling model and the inventory level of each product is controlled using a basestock policy. When the queue is empty, the inventory level is equal to the basestock level, thus the server will continue to serve the queue until it is empty. If the capacity of the que...