We present three problems motivated by order fulfillment in online retailing. First, we focus on one warehouse or fulfillment center. To optimize the storage space and labor, an e-tailer splits the warehouse into two regions with different storage densities. One is for picking customer orders and the other to hold a reserve stock that replenishes the picking area. Consequently, the warehouse is...

We present three problems motivated by order fulfillment in online retailing. First, we focus on one warehouse or fulfillment center. To optimize the storage space and labor, an e-tailer splits the warehouse into two regions with different storage densities. One is for picking customer orders and the other to hold a reserve stock that replenishes the picking area. Consequently, the warehouse is...

We study timing decisions for price change of style goods in the existence of competition. We model as a duopoly two firms which are selling their fixed stocks of an item in a given period of time. Our model differs from existing single-firm inventory models in that we explicitly consider the demand interactions through pricing decisions by two competing firms. Each firm starts with the same in...

In this research, we consider a retailer selling products from two different generations, both with limited inventory over a predetermined selling horizon. Due to the spatial constraints or the popularity of a given product, the retailer may only display goods from one specific generation. If the transaction of the displayed item cannot be completed, the retailer may provide an alternative from...

This study considers a supply chain that consists of n retailers, each of them facing a newsvendor problem, and a supplier. Groups of retailers might increase their expected joint profit by joint ordering and inventory centralization. However, we assume that the retailers impose some level of stock that should be dedicated to them. In this situation, we show that the associated cooperative game...

We address a stochastic single item production system in a make-to-stock environment with partial knowledge on future demand resulting from customers ordering in advance of their actual needs. The problem consists of determining the optimal size of a production lot to replenish inventory, so that delivery promises are met on time at the expense of minimal average costs. For this problem an opti...

Abstract Using state space techniques we study a “myopic” order-up-to policy. The policy is myopic because is it is optimal at minimising local inventory holding and shortage costs. In particular we study the bullwhip effect produced by the replenishment policy reacting arbitrary stochastic demand processes. We reveal that bullwhip is fundamentally caused by the co-variance between the inventor...

In this paper, we investigate retailer’s procurement policy of a perishable item that has stock-dependent demand rate. Stock-dependent demand rate implicitly implies that all items in inventory are displayed for sale. In this case, the retailer tends to display sales items such a way that FIFO policy can be enforced, while prudent customers search for freshest items, which results in LIFO polic...

on time supply of materials in construction projects is very important. therefore, coordinating a project with key suppliers, while ensuring the timely supply of materials, make the minimum costs of project. one way to create this coordination is integrated inventory planning which has been accomplished in this study. it is necessary to mention that such a model is considered np_hard in terms o...

inventory models play an important role in determining the optimal ordering and pricing policies. much work has been reported in literature regarding inventory models with finite or infinite replenishment. but in many practical situations the replenishment is governed by random factors like procurement, transportation, environmental condition, availability of raw material etc., hence, it is nee...