This paper is concerned with long-run average cost minimization of a stochastic inventory problem with Markovian demand, xed ordering cost, and convex surplus cost. The states of the Markov chain represent di erent possible states of the environment. Using a vanishing discount approach, a dynamic programming equation and the corresponding veri cation theorem are established. Finally, the existe...

Good inventory management is essential for a firm to be cost competitive and to acquire decent profit in the market, and how to achieve an outstanding inventory management has been a popular topic in both the academic field and in real practice for decades. As the production environment getting increasingly complex, various kinds of mathematical models have been developed, such as linear progra...

This article discusses inventory management of perishable items, including the differences between inventory models that consider items’ perishability and the standard models that ignore this issue. We hope that this article will help fostering the interest of students and researchers in inventory control of perishable items, and ultimately help improving the inventory control of perishable ite...

Nowadays, many distribution networks deal with the distribution and storage of perishable products. However, distribution network design models are largely based on assumptions that do not consider time limitations for the storage of products within the network. This study develops a model for the design of a distribution network that considers the short lifetime of perishable products. The mod...

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...

Corresponding Author: Rakesh Prakash Tripathi Department of Mathematics Graphic Era University, Dehradun, India Email: [email protected] Abstract: In real life customers are motivated to buy more if there is more availability of product. In this study, we develop inventory model for inventory dependent demand with different holding cost function. Mathematical formulations are discu...

A new inventory model that considers both cost and emission functions is proposed for environments where temperature-controlled items need to be stored at a certain, non-ambient temperature and to do so modular temperature-control units are used. Transportation unit capacity and storage unit capacity are considered, which results in non-linear, non-continuous cost and emissions functions. A set...

We consider an inventory system in which inventory level fluctuates as a Brownian motion in the absence of control. The inventory continuously accumulates cost at a rate that is a general convex function of the inventory level, which can be negative when there is a backlog. At any time, the inventory level can be adjusted by a positive or negative amount, which incurs a fixed cost and a proport...

In this paper, an purchasing inventory model for deteriorating items is developed with a linear, positive trend in demand, allowing inventory shortages and backlogging. It is assumed that the goods in the inventory deteriorate over time at a constant rate . Two models are developed for two operational policies. The first policy covers the case that the inventory model with linear demand for det...

In multi-item inventory with very large number of items in retail sale stores, purchase dependency in demand amongst the items can be described by association rules mined from sale transaction data. With the knowledge of association rules, inventory replenishment policy can be designed which will result in low inventory cost and better profitability. The relevant inventory costs include the cos...