Errors in order forecasts are a salient source of inefficiencies in retail supply chains. Many operational decisions made by suppliers hinge on order forecasts, which typically are based solely on either order or point-of-sale (POS) history. Using a discrete-time formulation, this research demonstrates that if a supplier knows that a retailer is using a base stock policy, it should use that kno...

This paper considers a one-warehouse multi-retailer inventory system that faces discrete stochastic demand of the customers. Under the so-called balance assumption (also known as the allocation assumption), base stock policies are optimal. Our main contribution is to show that the optimal base stock levels satisfy newsvendor characterizations, which are in terms of inequalities, and to extend t...

We consider the issue of modeling service level measures in stochastic decision making via chance constraints. More specifically we focus on service level measures in production/inventory control under stochastic demand and α service level constraints, which are constraints enforcing a prescribed non-stockout probability for the system. We introduce multiple ways of expressing these chance cons...

We study an infinite-horizon, N -stage, serial production/inventory system with two transportation modes between stages: regular shipping and expedited shipping. The optimal inventory policy for this system is a top–down echelon base-stock policy, which can be computed through minimizing 2N nested convex functions recursively (Lawson and Porteus, Oper Res 48 (2000), 878–893). In this article, w...

W consider a newsvendor who dynamically updates her forecast of the market demand over a finite planning horizon. The forecast evolves according to the martingale model of forecast evolution (MMFE). The newsvendor can place multiple orders with increasing ordering cost over time to satisfy demand that realizes at the end of the planning horizon. In this context, we explore the trade-off between...

This paper considers a single-item, periodic-review inventory model with uncertain demands. We assume a finite production capacity in each period. With stationary data, a convex one-period cost function and a continuous demand distribution, we show (under a few additional unrestrictive assumptions) that a modified basic-stock policy is optimal under the discounted cost criterion, both for finit...

We study the value of multi-stage advance demand information (MADI) in a production system in which customers place an order in advance of their actual need, and each order goes through multiple stages before it becomes due. Any order which is not immediately …lled at its due date will be backordered. The producer must decide whether to produce or not based on real-time information regarding cu...

the aim of this study is to investigate the relationship between dividend policy with stock liquidity and information asymmetry considering the characteristics of the company as controlling variables in tehran stock exchange. for this purpose, all listed companies in tehran stock exchange as the statistical population was considered during the period 2009 to 2014, that after screening by simple...

we consider a system consisting of a manufacturer serving several retailers. The manufacturer produces a standard product in a make-to-stock fashion in anticipation of orders emanating from n retailers. Orders from the retailers arrive in batches which sizes follow a discrete distribution. The production time is assumed to follow a k0Erlang distribution. Order inter-arrival time for class l dem...