We study the inventory control problem of a retailer working under stochastic demand and stochastic limited supply. We assume that the unfilled part of the retailer's order is fully backordered at the supplier and replenished with certainty in the following period. As it may not always be optimal for the retailer to replenish the backordered supply, we also consider the setting in which the ret...

The theory on multi-echelon production/inventory systems is a core theory within supply chain management. It provides useful insights for design of supply chains and may be used for tactical and operational planning decisions. The multi-echelon theory started with the seminal paper of Clark and Scarf in 1960. In this tutorial, we describe for which systems optimal policies are known, which key ...

This paper considers a decentralized supply chain including one retailer and one manufacturer , where the manufacturer's production yield and the retailer's demand are both sto-chastic. At the beginning of the selling season, the retailer places an order and purchases an option contract with the manufacturer. After the selling season, the excess demand is partially backordered, and the retailer...

This paper studies convergence properties of optimal values and actions for discounted and averagecost Markov Decision Processes (MDPs) with weakly continuous transition probabilities and applies these properties to the stochastic periodic-review inventory control problem with backorders, positive setup costs, and convex holding/backordering costs. The following results are established for MDPs...

From our review on sustainable EOQ inventory models, most researchers did not include carbon emission in the objective function or constraint. In this study, we enrich recent research by incorporating sustainability criteria into model. The study develops an model considering that comes from transportation and warehouse operations. Moreover, also consider imperfect quality items assume complete...

Abstract Customer purchasing deeds may be affected by factors such as selling price and inventory level instead of demand which is considered either constant or function of single variable which is not feasible. Consequently in the present study we have considered demand rate as a function of stock-level and selling price both. In present study, in order to develop this model it has been assume...