In this paper, we consider a dynamic stochastic inventory model with fixed inventory holding and shortage costs in addition to a fixed ordering cost. WE discuss a sufficient and necessary condition for an (s,S) policy to be optimal in the class of such stochastic inventory models. Furthermore, we explore how such a sufficient and necessary condition can be rewritten when the demand distribution...

We consider a multi-product serial two echelon inventory system with stochastic demand. Inventories at the downstream location are replenished periodically using an automatic ordering system. Under vendor managed inventory strategies the upstream stage is allowed to adapt these orders in order to benefit from economies of scale. We propose three different VMI strategies, aiming to reduce the or...

We consider an optimization problem for a multiclass queueing model of a decentralized production-distribution system: A single server can produce a variety of products, and completed units pass through an infinite server delay node on their way to a warehouse inventory. Each product has its own warehouse, demand for each product is satisfied by its associated inventory, and unsatisfied demand ...

A manufacturing facility consisting of two stations in tandem operates in a maketo-stock mode: after production, items are placed in a finished goods inventory that services an exogenous demand. Demand that cannot be met from inventory is backordered. Each station is modelled as a queue with controllable production rate, and the problem is to control these rates to minimize inventory holding an...

Vendor-managed inventory (VMI) is a widely used collaborative inventory management policy in which manufacturers manages the inventory of retailers and takes responsibility for making decisions related to the timing and extent of inventory replenishment. VMI partnerships help organizations to reduce demand variability, inventory holding and distribution costs. This study provides empirical evid...

We consider an inventory routing problem in discrete time where a supplier has to serve a set of customers over a time horizon. A capacity constraint for the inventory is given for each customer and the service cannot cause any stock-out situation. Two different replenishment policies are considered, the order-up-to level and the maximum level policies. A single vehicle with a given capacity is...

In this paper, the classical economic production quantity (EPQ) model is developed for non-instantaneous deteriorating items by considering a relationship between the holding cost and the ordering cycle length. Two models are developed. First, the proposed model is considered when backorders are not permitted and this condition is waived for the second case. The cost functions associated with t...

Purpose: Prior studies show that inventory holding is closely linked to liquidity and procyclical dependent on the combination of macroeconomic firm characteristics. Thus, conditional linear factor models such as OLS should fail explain inventory-holding motive, especially in context developing countries. This study seeks empirically investigate determinants corporate based evidence from pharma...