In this paper we introduce the optimal solution for a simple and yet practical inventory policy with the important characteristic which eliminates the uncertainty in demand for suppliers. In this new policy which is different from the classical inventory policies, the time interval between any two consecutive orders is fixed and the quantity of each order is one. Assuming the fixed ordering cos...

The relationship between inventory investment and the real interest rate has been difficult to assess empirically. Recent work has proposed a linear-quadratic inventory model with time-varying discount factor to identify the effects of real interest rate on inventory investment. The authors show that this framework does not separately identify the effects of real interest rate on inventory inve...

We consider a liquid type of a deteriorating item which is packaged by an outside supplier and is delivered to final customers by a distributor. Customers arrive according to a Poisson process and ask for an integer number of packages. Unsatisfied demands are backordered. The inventory is reviewed continuously and replenished from an external supplier with a positive deterministic lead time fol...

W to begin? I became involved with inventory theory in 1955, but the proper starting point for this memoir is some years earlier, in the fall of 1951, when I began my graduate training in the Department of Mathematics at Princeton University. I had lived at home during my undergraduate years at Temple University and was totally unprepared for the remarkable features of life at Princeton in the ...

A standard problem in operations literature is optimal stocking of substitutable products. We consider a very general consumer-driven substitution problem with an arbitrary number of products and a quite general substitution structure, both under centralized inventory management and competition. We obtain analytically tractable solutions that generalize and extend the results of several earlier...

Multi-supplier inventory systems with seasonal demand are investigated via queuing theory methods in the framework of cost approach. Optimal distribution of replenishment orders between suppliers is obtained under assumption of make-to-order strategy. To this end asymptotic analysis of systems behavior is performed. We apply various mathematical tools such as weak convergence and use properties...

Full, accurate and evident information about stocks is a key factor of successful inventory management process. Effective inventory management should include a comprehensive solution, based on mathematical methods and control of current balances and software. Such solution for small businesses should be effective and should not be too expensive. The paper shows an approach to using database tec...

Market segmentation has emerged as the primary means by which firms achieve optimal production policy. In this paper, we use market segmentation approach in multi-product inventory system with inventory-level-dependent demand. The objective is to make use of optimal control theory to solve the inventory-production problem and develop an optimal production policy that minimizes the total cost as...

In this paper, a multi-product continuous review inventory control problem within the batch arrival queuing approach (M/M/1) is modeled to find the optimal quantities of the maximum inventory. The objective function is to minimize the total costs of ordering, holding and shortage under warehouse space and service level, and expected lost-sales shortage cost constraints from retailer and warehou...