Inventory management involves trade-offs between conflicting objectives such as cost minimization and service level maximization. The trade-off analysis of cycle stock investment and workload, so called the exchange curve, possibly dates back to several decades ago. These analyses seldom formulated inventory trade-offs as a multi-objective optimization problem and their solution procedures were...

To set inventory service levels, suppliers must understand how changes in inventory service level affect demand. We build on prior research, which uses analytical models and laboratory experiments to study the impact of a supplier’s service level on demand from retailers, by testing this relationship in the field. We analyze a field experiment at the supplier Hugo Boss to determine how the supp...

This note examines the inventory model with service level constraint in which the lead time, the reordered point and order quantity are treated as decision variables. The previous researchers believed that the objective function is concave in the lead time such that the minimummust occur on the boundary points of each sub-domain. In this note, we will show that their belief contains questionabl...

W study the following question: How does competition influence the inventory holdings of General Motors’ dealerships operating in isolated U.S. markets? We wish to disentangle two mechanisms by which local competition influences a dealer’s inventory: (1) the entry or exit of a competitor can change a retailer’s demand (a sales effect); and (2) the entry or exit of a competitor can change the am...

We consider the issue of modeling service level measures in stochastic decision making via chance constraints. More specifically we focus on service level measures in production/inventory control under stochastic demand and α service level constraints, which are constraints enforcing a prescribed non-stockout probability for the system. We introduce multiple ways of expressing these chance cons...

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...

We consider a service facility system with perishable inventory with finite number of servers. Each server having one perishable item for providing service. The arrival of a customer at the system according to independent Poisson Processes with rate  through a single channel. The service time of the customer is exponentially distributed with mean  1/ and the item in stock has exponential life...

In this paper, we consider a continuous review perishable inventory system with a service facility having two heterogeneous servers, server 1 and server 2 , and the demands originate from a finite population of N sources. In such systems, the customers demand is satisfied only after some service is completed by any one of the two servers. Compared to most inventory models in which inventory is ...

We consider a service facility system with perishable inventory with finite number of servers. Each server having one perishable item for providing service. The arrival of a customer at the system according to independent Poisson Processes with rate  through a single channel. The service time of the customer is exponentially distributed with mean  1/ and the item in stock has exponential life...