In this paper, we propose a mathematical model in stochastic dynamic optimization form to determine the optimal strategy for an integrated single product inventory control problem and supplier selection problem where the demand and purchasing cost parameters are random. For each time period, by using the proposed model, we decide the optimal supplier and calculate the optimal product volume pur...

Cost-based filtering is a promising technique able to improve search performance in combinatorial optimization problems. Such a technique has already been successfully applied to stochastic inventory control problems. We focus on the class of production/inventory control problems that considers a single product and a single stocking location, given a stochastic demand with a known non-stationar...

We consider a model of a supply chain consisting of n production facilities in tandem and producing a single product class. External demand is met from the finished goods inventory maintained in front of the most downstream facility (stage 1); unsatisfied demand is backlogged. We adopt a base-stock production policy at each stage of the supply chain, according to which the facility at stage i p...

We consider the simultaneous seat-inventory control of a set of parallel flights between a common origin and destination with dynamic customer choice among the flights. We formulate the problem as an extension of the classic multiperiod, single-flight “block demand” revenue management model. The resulting Markov decision process is quite complex, owing to its multidimensional state space and th...

We consider a single-item continuous-review (r, q) inventory system with a renewal demand process and i.i.d. stochastic leadtimes. Using a stationary marked point process technique and a heavy traffic limit, we prove a previous conjecture that inventory position and inventory on-order are asymptotically independent. We also establish closed-form expressions for the optimal policy parameters and...