We consider a firm which sells a product with a limited inventory over a finite sales horizon. In addition to the inventory level and time, the firm also sets its prices based on customer signals, which are quantified scores of relevant information about the customers and are correlated with customers’ reservation prices. We investigate the properties of “ideal” customer signals, i.e., signals ...

This paper deals with an inflation induced stock dependent demand inventory model with permissible delay in payments. In real life situations, some products maintain freshness and quality for some time. This inventory model is developed for non-instantaneous deteriorating items. The purpose of this paper is to obtain the optimal policies for maximizing the total profits. Numerical examples are ...

We study joint preventive maintenance (PM) and production policies for an unreliable production-inventory system in which maintenance/repair times are non-negligible and stochastic. A joint policy decides (a) whether or not to perform PM, and (b) if PM is not performed, then how much to produce. We consider a discrete-time system, formulating the problem as a Markov decision process (MDP) model...

We consider discounted Markov Decision Processes (MDPs) with countably-infinite statespaces, finite action spaces, and unbounded rewards. Typical examples of such MDPs areinventory management and queueing control problems in which there is no specific limit on thesize of inventory or queue. Existing solution methods obtain a sequence of policies that convergesto optimality i...

We consider a single stage production-inventory system whose production and demand rates are modulated by an environment process modeled as a finite state Continuous Time Markov Chain (CTMC). When the inventory level reaches zero, an order is placed from an external supplier, and it arrives instantaneously. We derive an Economic Order Quantity (EOQ ) policy that minimizes the long-run average c...

1 We investigate optimality of myopic policies using the single-unit decomposition approach in inventory management. We derive, under certain conditions, closed-form replenishment decisions, that we call a base-probability policy. That is, the order associated with a given customer is placed if and only if its arrival probability within the lead-time is higher than a threshold.

F many companies, inventory record inaccuracy is a major obstacle to achieving operational excellence. In this paper, we consider an inventory system in which inventory records are inaccurate. The manager makes inventory inspection and replenishment decisions at the beginning of each period. There is a cost associated with each inspection. If an inspection is performed, inventory records are al...

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