inventory models play an important role in determining the optimal ordering and pricing policies. much work has been reported in literature regarding inventory models with finite or infinite replenishment. but in many practical situations the replenishment is governed by random factors like procurement, transportation, environmental condition, availability of raw material etc., hence, it is nee...

We study stochastic inventory planning systems with lost sales and censored demand under stationary and non-stationary settings. Contrary to classical inventory theory, we assume that no knowledge of demand is initially available, and lost sales in each period are unobservable. We take a non-parametric approach and propose adaptive inventory policies that generate a sequence of ordering decisio...

This paper examines “distribution policies” — that is, combined system inventoryreplenishment, vehicle routing and inventory-allocation policies — designed to minimize total expected purchasing and inventory-management (i.e., inventory-holding and backordering) costs/period for a one-warehouse N-retailer “symmetric” distribution system managed under a periodic-review policy. With respect to dyn...

We consider the periodic-review, single-location, single-product, production/inventory control problem under non stationary demand and service-level constraints. The product is perishable and has a fixed shelf life. Costs comprise fixed ordering costs and inventory holding costs. For this inventory system we discuss a number of control policies that may be adopted. For one of these policies, we...

W consider a two-echelon inventory system with a capacitated centralized production facility and several distribution centers (DCs). Both production and transportation times are stochastic with general distributions. Demand arrives at each DC according to an independent Poisson process and is backlogged if the DC is out of stock. We allow different holding and backlog costs at the different DCs...

In this work we develop a SD model for a make-to-order (MTO) three-stage capacitated production/inventory system. We employ a production order release mechanism affiliated with the automated pipeline inventory and order based production control system (APIOBPCS) policies family. The production rates at each stage are defined under alternative policies. One of the policies considers the human be...

Advance Demand Information can improve the performance of production/inventory systems with random demand considerably. However, to exploit the potential of such information, replenishment policies must be adapted to the available information. We explore the impact and the benefits of Advance Demand Information under optimal replenishment policies for two different supply chain structures, one ...

We study a single-product periodic-review inventory model in which the ordering quantity is either zero or at least a minimum order size+ The ordering cost is a linear function of the ordering quantity, and the demand in different time periods are independent random variables+ The objective is to characterize the inventory policies that minimize the total discounted ordering, holding, and backo...

This paper examines several inventory replenishment policies for a make-to-order inventory–production system that consists of a production workshop and a warehouse. Demands arrive to the production workshop according to a Poisson process, and are processed in an FCFS manner. The production workshop requires that the warehouse provides, as needed, raw materials for use in the production process....

An inventory manager is typically concerned with a number of diierent products. His decision-making task is made complicated by such factors as interdependent uncertain product demands and competition for limited storage space. The stochastic inventory problem involving these complexities cannot in general be decomposed into a number of distinct single product problems. In the paper \Stochastic...