In recent researches, vendor managed inventory (VMI) policy is rarely considered for deteriorating items.   This study considered the supply chain partner’s collaboration via a VMI system and provided an EOQ model for a two-level supply chain (single supplier - single retailer) to examine the inventory management proceedings for VMI and non-VMI supply chains. By a new approach in modeling, the ...

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...

An inventory manager is typically concerned with a number of diierent products. His decision-making task is made complicated by such factors as interdependent uncertain product demands and competition for limited storage space. The stochastic inventory problem involving these complexities cannot in general be decomposed into a number of distinct single product problems. In the paper \Stochastic...

Introduction. We study a class of capacitated stochastic lot-sizing inventory control problems with stochastic, non-stationary and correlated demands that evolve over time. Economies of scale and capacity constraints exist in many practical scenarios. However, models with fixed ordering costs and capacity constraints are typically computationally intractable, and even the structure of the optim...

In this work the management of a production system with a high mixture of products, interdependent demands and optional components is analyzed. An approach based on reorder point policy is proposed for both raw parts and finished goods inventory control. In the latter case, the solution of an optimization problem determines whether each product should be held in inventory and if so which safety...

We consider a make-to-stock supplier who operates a production facility with limited capacity. The supplier receives orders from customers belonging to several demand classes. Some of the customer classes share advance demand information with the supplier by announcing their orders ahead of their due date. However, this advance demand information is not perfect because the customer may decide t...

We study joint replenishment and clearance sales of perishable goods under a general finite lifetime and a last-in-first-out (LIFO) issuing rule, a problem common in retailing. We show that the optimal policies can be characterized by two thresholds for each age group of inventory: a lower one and a higher one. For an age group of inventory with a remaining lifetime of two periods or longer, cl...

We consider a retailer with limited inventories of identically priced, substitutable products. Customers arrive sequentially and the firm decides which subset of products to offer to each arriving customer depending on the customer’s preferences, the inventory levels, and the remaining time in the season. We show that the optimal assortment policy is to offer all available products if the custo...

As an effective way of decreasing production cost, remanufacturing has attracted more and more attention from firms. However, it also brings many difficulties to firms, especial when firms remanufacture products which they produce. A primary problem for the case is how to acquire the used product sold by the firm itself. In this paper, we consider a return compensation policy for acquiring used...