Consider stochastic production-inventory control problem in which there are multiple capacity sources, multiple heterogeneous products, non-stationary demand and time-varying costs. If shortage costs can be evaluated the natural objective is to minimize expected production, inventory and shortage costs. Otherwise one can use service level requirements as target inventory while trying to minimiz...

Based on the single-leg air cargo issues, we establish a dynamic programming model to consider the overbooking and space inventory control problem.We analyze the structure of optimal booking policy for every kind of booking requests and show that the optimal booking decision is of threshold type known as booking limit policy . Our research provides a theoretical support for the air cargo space ...

In this paper, we consider two fundamental inventory models, the single-period newsvendor problem and its multiperiod extension, but under the assumption that the explicit demand distributions are not known and that the only information available is a set of independent samples drawn from the true distributions. Under the assumption that the demand distributions are given explicitly, these mode...

We consider periodic review inventory control problems in directed networks, primary examples of which are distribution systems and assembly systems. External demand could occur at each node. When inventory is insufficient to meet requirements at a node, a portion of this demand is backordered and the remaining is lost. External demands, as well as lead times for inventory purchase, assembly, a...

Defined and evaluated are concepts and characteristics of net change, a method that facilitates replanning and provides timely response to chunge in a transaction-oriented system. (MRP) entail an inherent massive data-handling task. Consequently , batch-oriented MRP systems tend to be untimely in their response to change since replanning can be done only periodically at best, probably once a we...

This article evaluates the premise of demand adherence to normal distribution in inventory management models, showing that this can lead to significant distortions, mainly to stock control of very low and low consumption items. The article thus proposes a framework to help managers determine the best stock policy to be adopted given product demand characteristics. The article also presents the ...

Hybrid production-inventory systems are characterized by discrete decisions on production levels and/or capacity. These systems have broad applicability to important, emerging applications of process control concepts, among them time-varying adaptive behavioral interventions and supply chain management. This paper examines the usefulness of hybrid model predictive control (HMPC) in these two no...

In many industrial environments there is a significant class of problems for which the perishable nature of the inventory cannot be ignored in developing replenishment order plans. Food is the most salient example of a perishable inventory item. In this work, we consider the periodic-review, single-location, single-product production/inventory control problem under non-stationary stochastic dem...

The economic order quantity (EOQ) and the economic production quantity (EPQ) are well-known and commonly used inventory control techniques. The standard results are easy to apply but are based on a number of unrealistic assumptions. One of the assumption is that the demand is normally distributed in any interval. In several practical cases the assumption about independence of successive demands...

We examine inventory adjustment in the U.S. manufacturing sector using quarterly rmlevel data over the period 1978{97. Our evidence indicates that the inventory investment process is nonlinear and asymmetric, results consistent with a nonconvex adjustment cost structure. The inventory adjustment process di ers over the business cycle: for a given level of excess inventories, rms disinvest more ...