In this paper, an economic order quantity inventory model is analyzed, considering that the unit cumulative holding cost has two significant components: a fixed cost which represents the cost of accommodating the item in the warehouse and a variable cost given by a potential function of the length of time over which the item is held in stock. Shortages are allowed and, during the stockout perio...

The classical inventory control policies assume that orders are paid for at the time of their receipts, but in practice, suppliers may require retailers to pay a fraction purchasing cost advance, and sometimes allow them this several prepayments during predetermined period. Planning replenishments become challenging when decisions must be made under uncertainty, especially delivery is stochasti...

The recent advances in manufacturing systems motivate several studies to focus on Economic Production Quantity (EPQ) problem. Althuogh there are several extentions to the EPQ, this paper provides a new extension by considering some of the real world parameters like: (a) shortages in the form of partial backordering, (b) inventory can deteriorate stochastically, (c) machine can break down stocha...

We study a stationary, single-stage inventory system, under periodic review, with fixed ordering costs and multiple sales levers (such as pricing, advertising, etc.). We show the optimality of (s, S)-type policies in these settings under both the backordering and lost-sales assumptions. Our proof is novel, more direct and easier to understand than earlier ones. ∗Department of Industrial Enginee...

This paper differentiates between an order (line) fill rate and a volume fill rate and specifies their performance for different inventory control systems. When the focus is on filling complete customer orders rather than total demanded quantity the order fill rate would be the preferred service level measure. The main result shows how the order and volume fill rates are related in magnitude. E...