Abstract In this paper, we propose a new robust cycle-based control policy for single installation inventory models with non-stationary uncertain demand. The policy is simple, flexible, easily implementable and preliminary numerical experiments suggest that the policy has very promising empirical performance. The policy can be used both when the excess demand is backlogged as well as when it is...

In this paper, we establish the convexity of important cost functions in a general class of multi-echelon inventory models. In particular, we first study an assembly system with a single finished product managed using an echelon order-up-to policy. We show that the shortage penalty cost over any horizon is jointly convex with respect to the base-stock levels and capacity levels. Our second resu...

magnetic levitation (maglev) is amongst the most advanced technologies that are available to the transportation industries. it has already been noticed by decision makers in many countries around the globe. contrary to such high levels of interest, there are no practical algorithms available to the engineers and/or managers to assist them in analyzing economics of the maglev systems. therefore,...

Joint replenishment problem (JRP) is a common real problem which aims to minimize order cost and inventory holding cost. In this paper, classical, centralized and decentralized JRP models are discussed. An innovative heuristic to minimize the total cost is implemented for each model. This heuristic seeks to balance the order cost and the inventory holding costs. The results show that the innova...

We address a problem of inventory management of spare parts in the context of a large energy company, producer of oil and gas. Spare parts are critical for assuring operational conditions in offshore platforms. About 200,000 different items are held in several inventory plants. The inventory system implemented at the company corresponds to a min-max system. The control parameters are decided ba...

We investigate the polyhedral structure of the lot-sizing problem with inventory bounds. We consider two models, one with linear cost on inventory, the other with linear and fixed costs on inventory. For both models, we identify facet-defining inequalities that make use of the inventory bounds explicitly and give exact separation algorithms. We also describe a linear programming formulation of ...