We consider a single-item continuous-review (r, q) inventory system with a renewal demand process and i.i.d. stochastic leadtimes. Using a stationary marked point process technique and a heavy traffic limit, we prove a previous conjecture that inventory position and inventory on-order are asymptotically independent. We also establish closed-form expressions for the optimal policy parameters and...

We consider a single-item, periodic-review, serial, multi-echelon inventory system, with linear inventory holding and penalty costs. In order to facilitate shipment consolidation and capacity planning, we assume the system has implemented periodic batching: each stage is allowed to order at given equidistant times. Further, for each stage except the most downstream one, the reorder interval is ...

We consider a periodic-review, serial inventory system, in which each stage replenishes inventory according to an echelon-stock (r, nQ, T ) policy – a standard echelon-stock (r, nQ) policy executed every T periods. Demands are independent, identically distributed in different periods and occur at the most downstream stage. Two types of fixed costs are considered: setup cost and replenishment co...

Calculating the mean physical stock in a simple periodic review inventory system seems to be straightforward. However, the standard approximate expressions appear to yield inaccurate results, especially for low service levels. Low service levels are frequently encountered at intermediate nodes in cost-optimal solutions for multiechelon systems. In this note, we present an improved approximate m...

In this paper we study a periodic review inventory model with stock dependent demand. When stock on hand is zero, the inventory manager offers a price discount to customers who are willing to backorder their demand. Permissible delay in payments allowed to the inventory manager is also taken into account. Numerical examples are cited to illustrate the model.

In this paper, an incentive scheme based on crashing lead time is proposed to coordinate a supplier-retailer supply chain (SC). In the investigated SC, the supplier applies a lot-for-lot replenishment policy to replenish its stock and determines the replenishment multiplier. Moreover, the transportation lead time is considered under the control of the supplier. The retailer as downstream member...

We study a two-item two-warehouse periodic review inventory model that allows transshipment between warehouses and emergency orders. The model helps to determine two decisions: (i) the order up to levels for the two items at the two warehouses, and (ii) whether to accept a transshipment request from the other warehouse. The acceptance of a transshipment request in a warehouse depends on the tim...

This paper is concerned with the coordination of inventory control in divergent multiechelon inventory systems under periodic review and decentralized control. All the installations track echelon inventories. Under decentralized control the installations will decide upon replenishment policies that minimize their individual inventory costs. In general these policies do not coincide with the opt...