• We characterize the optimal joint replenishment policy. propose a new, exact method to evaluate any Our vastly reduces state-space size when compared Markov approach. introduce generalized can-order policy and improve decomposition new stationary under compound Poisson demand. The makes use of an embedded chain that only considers state system after order is placed. resulting space reduction ...

T his study analyzes optimal replenishment policies that minimize expected discounted cost of multi-product stochastic inventory systems. The distinguishing feature of the multi-product inventory system that we analyze is the existence of correlated demand and joint-replenishment costs across multiple products. Our objective is to understand the structure of the optimal policy and use this stru...

In this paper we present two models for joint stock replenishment and shipment consolidation decisions which arise in the context of vendor managed inventory. Stock replenishment from suppliers or shipment to customers each incurs a lump-sum cost to the vendor. We assume the vendor uses the reorder point, lot-size policy to replenish stock and one of two schemes to dispatch shipment: the time-b...

The allocation of cost savings is very important for the success of the joint relationship between the buyer and vendor in supply chain management. This paper develops integrated models with permissible delay in payments for determining the optimal replenishment time interval and replenishment frequency. In addition, the variant pricing strategy is employed to obtain both sides’ cost savings in...

We study an inventory system that supplies price-sensitive demand modeled by Brownian motion. The optimal pricing and inventory replenishment decisions under both long-run average and discounted objectives are derived, and related to or contrasted with previously known results. In addition, we emphasize the interplay between pricing and replenishment decisions, and the ways in which they react ...

In this article, we deal with the problem of determining the economic operating policy when a number of items are to be procured from a number of suppliers offering different quantity discounts schedules. In such inventory problems, a fixed cost is incurred with each replenishment order, independent of the suppliers as well as the items involved in the order. Further, the item involves a minor ...

This paper discusses how a vendor manages multiple products within its multiple non-identical retailers operating under a vendor managed inventory (VMI) contract that allows unequal shipment frequencies to the retailers. The vendor replenishment cycle for each product is taken to be an integer multiple of the retailer replenishment cycle where vendor is penalized for exceeding the upper stock l...