This dissertation extends the classical inventory control model to address stochastic inventory control problems raised in market-making and robust supply chains. In the financial market, market-makers assume the role of a counterpart so tbat investors can trade any fixed amounts of assets at quoted bid or ask prices at any time. Market-makers )ellefit from the spread between the bid and ask pr...

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...

Semilinear stochastic evolution equations with multiplicative L'evy noise are considered‎. ‎The drift term is assumed to be monotone nonlinear and with linear growth‎. ‎Unlike other similar works‎, ‎we do not impose coercivity conditions on coefficients‎. ‎We establish the continuous dependence of the mild solution with respect to initial conditions and also on coefficients. ‎As corollaries of ...

The need for integration in supply chain management leads us to consider the coordination of two logistic planning functions: transportation and inventory. The coordination of these activities can be an extremely important source of competitive advantage in supply chain management. The battle for cost reduction can involve finding the equilibrium between transportation and inventory management ...

We study how a manager’s short-term interest in the firm’s market value may motivate channel stuffing: shipping excess inventory to the downstream channel. Channel stuffing allows a manager to report sales in excess of demand in order to influence investors’ valuation of the firm. We apply an inventory model which highlights the potential role of inventory in the manager’s channel stuffing and ...

In this article, we develop an equilibrium model for storable commodity prices. The model is formulated as a stochastic dynamic control problem and considers two state variables the exogenous supply and the inventory. The inventory is a fully controllable endogenous variable. We assume that the uncertainty arises from the supply, which evolves as a Ornstein-Uhlenbeck stochastic process. This mo...

The efficient management of a distribution system requires coordination between transportation planning and inventory control. Small and frequent shipments can reduce inventory levels while maintaining high customer service levels, but they increase unit transportation costs due to inappropriate utilization of the vehicles and more handling costs. On the other hand shipment consolidation polici...

We consider stochastic nite-horizon inventory models with discrete distributions that are incompletely speciied by selected moments, percentiles, or a combination of moments and per-centiles. The objective is to determine an inventory policy that minimizes the maximum expected cost over the class of demand distributions satisfying the speciications described above. We show that many inventory m...

We consider the problem of dynamically cross-selling products (e.g., books) or services (e.g., travel reservations) in the e-commerce setting. In particular, we look at a company that faces a stream of stochastic customer arrivals and may offer each customer a choice between the requested product and a package containing the requested product as well as another product, what we call a “packagin...

In this article we propose, for any > 0, a 2(1+ )-approximation algorithm for a facility location problem with stochastic demands. At open facilities, inventory is kept such that arriving requests find a zero inventory with (at most) some pre-specified probability. The incurred costs are the expected transportation costs from the demand points to the facilities, the operating costs of the facil...