Accurate information on dual prices of capacitated resources is of interest in a number of applications, such as cost allocation and pricing. To gain insight we focus on the dual prices of capacity and demand in a single-stage single-product production-inventory system, and discuss their interpretation. In particular, we examine the behavior of two different production planning models: a conven...

An enterprise network is analyzed from the viewpoint of an end-product manufacturer who receives customer orders and organises his production and supply policy so as to minimize the sum of his average holding cost and average stock-out cost. For each main component to be ordered, the producer has several possible suppliers. The arrivals of customers’ orders are random and delivery times from su...

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the advent of e-commerce has prompted many manufacturers to redesign their traditional channel structure by engaging in direct sales. in this paper, we present a dual channel inventory model based on queuing theory in a manufacturer-retailer supply chain, consisting of a traditional retail channel and a direct channel which stocks are kept in both upper and lower echelon. the system receives st...

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...

Cross-docking is a logistic concept, which plays an important role in supply chain management by decreasing inventory holding, order packing, transportation costs and delivery time. Paying attention to these concerns, and importance of the congestion in cross docks, we present a mixed-integer model to optimize the location and design of cross docks at the same time to minimize the total transpo...

We study a repairable item inventory system under limited repair capacity and nonstationary Poisson demands, motivated by corrective maintenance of military equipment. Our goal is to minimize the cost of both spare and repair resource allocation. We propose an efficient analytical model that combines optimization modeling and queuing theory.

All players in the healthcare industry face increasing public and political pressure to improve quality of care and control costs. Hospitals, on the frontline of this challenge, face nursing shortages and financial constraints. Survey data indicate that missing medication and supplies interrupt nurses more than twice per shift, increasing costs and putting patients at risk. These challenges per...