We present a Markovian model of a single rm engaging in a periodic review inventory policy to procure goods from two alternate suppliers. Each supplier quotes a state-dependent minimum order quantity, maximum order quantity, and unit price. The purchasing rm faces state-dependent unit inventory holding costs, as well as backorder/penalty costs if they are unable to immediately satisfy their cus...

We analyze the joint inventory and pricing decisions of a firm when demand depends on not only the current selling price but also a memory-based reference price and customers are loss averse. The presence of reference price effect leads to a non-concave one-period expected revenue in price and reference price. We introduce a transformation technique that allows us to prove under some mild assum...

In this paper we consider a two-level inventory system with one warehouse and one retailer with information exchange. Transportation times are constant and retailer faces independent Poisson demand. The retailer applies continuous review (R,Q)-policy. The supplier starts with m initial batches (of size Q), and places an order to an outside source immediately after the retailer’s inventory posit...

Dan Zhang Leads School of Business, University of Colorado at Boulder, Boulder, CO 80309, USA [email protected] Inventory-based dynamic pricing has become a common operations strategy in practice and has received considerable attention from the research community. From an implementation perspective, it is desirable to design a simple policy like a base stock list price (BSLP) policy. The e...

We consider a spare parts stock point that serves an installed base of machines. Each machine contains the same critical component, whose degradation behavior is described by a Markov process. We consider condition based spare parts supply, and show that an optimal, condition based inventory policy is 20% more efficient on average than a standard, state-independent base stock policy. We further...

Recent supply chains face higher volatility due to increased length and complexity. Cost pressure from severe competition drives industries to outsource its production to Asia, which in turn makes the supply chains long and complex. As a result, it is increasingly critical to manage supply chains actively to reduce uncertainty in delivery lead time and increase service rates. Often operating mu...

With supply chains becoming increasingly global, the issue of bullwhip effect, a phenomenon attributable to demand fluctuation in the upstream section of the supply chains, has received greater attention from many researchers. However, most existing research studies on quantifying the bullwhip effect were conducted under the first-order autoregressive [AR(1)] incoming demand process or its vari...

The paper presents a universal feedback control policy (UCP) for an arbitrary road network of signalized intersections. At each time and at each intersection, the control simultaneously activates one set of compatible phases or streams. The control is a function of the current state of the road network, the vector of all queue lengths in the network. The activation of a phase permits vehicles t...

Number: 007-0663 An Inventory Sharing and Allocation Method for a Multi-location Service Parts Logistics Network with Time-based Service Levels Erhan Kutanoglu Graduate Program in Operations Research and Industrial Engineering Department of Mechanical Engineering The University of Texas at Austin [email protected] POMS 18th Annual Conference Dallas, Texas, U.S.A. May 4 to May 7, 2007 Abstr...