Given stock allocation in an inventory system, it is necessary to do reallocation periodically to address inventory imbalance and maximize availability. In this paper, we allow two opportunities to perform reallocation within a replenishment cycle. We derive a mathematical model to dynamically determine when to reallocate and how to reallocate. Experimental results show that multiplereallocatio...

The research in this paper is motivated by a real life spare parts networks for complex technical systems in oil refining sector. At the customers the availability of the installed technical systems often is essential for the primary process. Hence, they require a high availability. For improve the management of the spare parts inventory the main company (the customer) has developed a new strat...

University. One of my reasons for choosing RAND rather than a more conventional academic appointment was my desire to be involved in applied rather than abstract mathematics. I could not have selected a better location to achieve this particular goal. George Dantzig had arrived recently and was in the process of applying linear programming techniques to a growing body of basic problems. Richard...

A central question in supply chain management is how to coordinate activities and inventories over a large number of stages and locations, while providing a high level of service to end customers. One theoretically and practically important methodology for addressing this problem is the guaranteed service (GS) framework, in which the stages of the supply chain operate according to base stock po...

This paper presents a multi-period inventory lot-sizing scenario, where there are multiple products and multiple suppliers. We consider a situation where the demand of multiple discrete products is known over a planning horizon. Each of these products can be sourced from a set of approved suppliers, a supplier-dependent transaction cost applying for each period in which an order is placed on a ...

The Multi-Echelon Distribution Supply Chain (MEDSC) is a multifaceted structure, focusing on the integration of all factors that involved in the overall distribution process of finished products to the customers. The growing interest in multi-echelon distribution systems has highlighted the need to adopt an appropriate approach to ensure the efficient management of their complexity. While there...

In this paper, we devise a framework for obtaining the optimal ordering policy in a single location, continuous review inventory system with arbitrary inter-demand times. We show that it is optimal to order at demand arrival epochs only if the inter-demand time has constant or decreasing failure rate (CFR or DFR). When the inter-demand time has increasing failure rate (IFR), we show that the op...

In this paper, we consider a supply chain model consisting of a single product, one supplier and multiple retailers. Demand at the retailers is random, but stationary. Each retailer places her orders to the supplier according to the well known (Q,R) policy. We assume that the supplier has on-line information about the demand as well as inventory activities of the product at each retailer and em...

We show the optimality of state dependent echelon base stock policies in uncapacitated serial inventory systems with Markov modulated demand and Markov modulated stochastic leadtimes in the absence of order crossing. Our results cover finite time horizon problems as well as infinite time horizon formulations, with either a discounted or an average cost criterion. We employ a novel approach, bas...

Inventory is lifeblood in an organization. Multiechelon inventory of Olympia paper mill, Khyber Pakhtonkhwa is optimized by efficient management of the organizational supply chain (SC). A supply chain is designed starting from raw material receiving from supplier up to finished good delivered to the customer. The on-going setup of the selected organization is traditional based on the experience...