The advent of e-commerce has prompted many manufacturers to redesign their traditionalchannel structure by engaging in direct sales. In this paper, we present a dual channel inventory modelbased on queuing theory in a manufacturer-retailer supply chain, consisting of a traditional retailchannel and a direct channel which stocks are kept in both upper and lower echelon. The systemreceives stocha...

We study the optimal pricing and replenishment decisions in an inventory system with a price-sensitive demand, focusing on the benefit of the inventory-based dynamic pricing strategy. We find that demand variability impacts the benefit of dynamic pricing not only through the magnitude of the variability but also through its functional form (e.g., whether it is additive, multiplicative, or other...

When the theory of constraints (TOC) supply chain replenishment system (TOC-SCRS) is deployed in a plant or a central warehouse, replenishment frequency (RF) becomes one of the important decision parameters and depends on the sales or replenishment quantity (RQ) in the plant. The higher RF is preferred by TOC for the low inventory and the fast response to different market requirements. However,...

In this paper we consider a single item, discrete time, lot sizing situation where demand is random and its parameters (e.g., mean and standard deviation) can change with time. For the appealing criterion of minimizing expected total relevant costs per unit time until the moment of the next replenishment we develop two heuristic ways of selecting an appropriate augmentation quantity beyond the ...

In this article, we consider an infinite horizon, single product economic order quantity where demand and deterioration rate are continuous and differentiable function of price and time, respectively. In addition, we allow for shortages and completely backlogged. The objective is to find the optimal inventory and pricing strategies maximizing the net present value of total profit over the infin...

0377-2217/$ see front matter 2008 Elsevier B.V. A doi:10.1016/j.ejor.2008.09.037 * Tel.: +90 312 2901702. E-mail address: [email protected]. In this study, we analyze the replenishment decisions under a general replenishment cost structure that includes stepwise freight costs and all-units quantity discounts. We first formulate a general model that accounts for a larger class of problems an...

Keywords: Assemble-to-order (ATO) Inventory Stochastic program Optimal policy Multi-dimensional newsvendor model a b s t r a c t In this paper we introduce a multi-stage stochastic program that provides a lower bound on the long-run average inventory cost of a general class of assemble-to-order (ATO) inventory systems. The stochastic program also motivates a replenishment policy for these syste...

The rapid improvement in the clinical manifestations of thiamine deficiency with thiamine supplementation is well known. To study this process in more detail, we rendered rats thiamine deficient either by dietary deprivation alone (DD) or, in addition, by daily pyrithiamine administration (DD + PT). We observed the cerebral metabolic and histological responses of these rats after 1 or 7 days of...

In this paper we develop an economic order quantity model to investigate the optimal replenishment policies for instantaneous deteriorating items under inflation and trade credit. Demand rate is a linear function of selling price and decreases negative exponentially with time over a finite planning horizon. Shortages are allowed and partially backlogged. Under these conditions, we model the ret...