While developing the inventory model with shortages under permissible delay in payments, it has been observed in the literature that the researchers have not considered the fact that the retailer can earn interest on the revenue generated after fulfilling the outstanding demand as soon as he receives the new consignment at the start of the cycle. Owing to this fact, the present study investigat...

We consider a stochastic inventory control problem with Markovian capacity and the option of order rejection. We show its optimal policy to be the combination of a capacity-dependent modified base-stock production policy and a capacity-dependent critical-point order acceptance policy. When capacity is stochastically monotone, we show that the policy parameters change over the current capacity l...

In this paper a deterministic inventory model is developed when the deterioration is constant. Demand rate is a function of selling price and holding cost is taken as time dependent. The model is solved allowing shortage in inventory. The results are solved with the help of numerical example by using Mathematica 5.1. The sensitivity analysis of the solution has done with the changes of the valu...

In the era of meager profit, production costs often become an important factor affecting SMEs’ operating conditions, and how to effectively reduce production costs has become an issue of in-depth consideration for the business owners. Especially, the food and beverage (F&B) industry cannot accurately predict the demand. It many cause demand forecast fall and excess or insufficient inventory pre...

It is a great pleasure to announce that the 2009Manufacturing & Service Operations Management Best Paper Award goes to Nicole DeHoratius, Adam J. Mersereau, and Linus Schrage for “Retail Inventory Management When Records Are Inaccurate” (2008). This annual award is given to one paper, published in one of the prior three volumes of M&SOM. Nominees were first appraised byM&SOM associate editors t...

As part of its growth strategy, Caterpillar Inc. plans to launch a new P2000 product line of \compact" construction equipment and work tools. In anticipation of this, they asked the authors to construct and analyze potential P2000 supply chain con gurations. Through the use of decomposition, and results from network ow theory, inventory theory, and simulation theory, we were able to provide a s...

This paper addresses the effect of probabilistic selling on inventory decisions and the expected profit through demand reshaping and demand substitution. By considering a scenario with two higher-priced specific products and one lower-priced probabilistic product, we construct a new newsboy-type inventory model with demand reshaping and substitution. A simulation study is implemented to explore...

In this article, we extend Cheng, Zhang and Wang [17] model studied pricing strategies in marketing. The objective is to find the optimal inventory and pricing strategies maximizing the net present value of total profit over the infinite horizon. It is important to control and maintain the inventories of deteriorating items for the modern corporation. We will discuss two models: one is without ...

We consider a stochastic inventory control problem in which a buyer makes procurement decisions while facing periodic random demand and two supply sources, namely, a long-term contract supplier and a spot market. The contract between the buyer and the supplier partially shields the latter from the vicissitudes of the spot market, in that the price paid by the buyer to the supplier is only parti...

Motivated by the widespread adoption of dynamic pricing in industry and the empirical evidence of costly price adjustments, in this paper we consider a periodic-review inventory model with price adjustment costs that consist of both fixed and variable components. In each period, demand is stochastic and price-dependent. The firm needs to coordinate the pricing and inventory replenishment decisi...