This paper is an in-depth treatment of an inventory control problem with perishable items. We focus on two prototypes of perishability for items that have a common shelflife and that arrive in batches with zero lead time: (i) sudden deaths due to disasters (e.g., spoilage because of extreme weather conditions or a malfunction of the storage place) and (ii) outdating due to expirations (e.g., me...

The purposes of this paper are two-fold. On the one hand, we shall provide a decision analysis justification for the Value at Risk (VaR) approach based on ex-post, disappointment decision making arguments. We shall show that the VaR approach is justified by a disappointment criterion. In other words, the asymmetric valuation between ex-ante expected returns above an appropriate target return an...

We study a finite-horizon lost-sales inventory model. The demand distribution is unknown and is dynamically updated based on the previous sales data in a Bayesian fashion. We derive a samplepath representation of the first order optimality condition, which characterizes the key tradeoff of the problem. The expression allows us to see why the computation of the optimal policy is difficult and wh...

We study a multicomponent, multiproduct production and inventory system in which individual components are made to stock but final products are assembled to customer orders. Each component is produced by an independent production facility with finite capacity, and the component inventory is controlled by an independent base-stock policy. For any given base-stock policy, we derive the key perfor...

In many real inventory situations of short life-cycle products the decision maker often has to provide a subjective estimate of new demand distribution due to the lack of historical data. Thus, both randomness and uncertainty simultaneously appear in a single-period inventory (newsboy) problem. In this paper, we develop both single-item and multi-item single-period inventory models when market ...

The purpose of this paper is to extend [Ouyang, L. Y., Chuang, B. R. (2001). A periodic review inventory-control system with variable lead time. International Journal of Information and Management Sciences, 12, 1–13] periodic review inventory model with variable lead time by considering the fuzziness of expected demand shortage and backorder rate. We fuzzify the expected shortage quantity at th...

Permissible delay in payment basically termed as “Trade credit financing” and in the present business scenario it has become a popular trend to attract the retailers by offering some interest free period by suppliers/wholesalers to increase the sales. The phenomenon of trade credit has drawn attention of many researches for last decay.In this work, for the development of model we have considere...

In this paper we shall discuss with the optimal ordering policy for two warehouse inventory model of non-instantaneous deteriorating items and stock-dependent demand. Here shortage is not allowed. Here the holding and deteriorating costs in both warehouses are different and assumed that the holding cost in the RW(rented warehouse) than in the OW(owned warehouse) the optimal solution are shown. ...

In this paper, an integrated inventory model is developed from the perspective of a single vendor and multi-buyers for deteriorating items under fuzzy environment and inflation. In the development of the model, it is assumed that all costs parameters, demand and the production rates are imprecise in nature; they are represented by the trapezoidal fuzzy numbers, as these parameters are not const...

Under the assumption that the replenishment lead time is dependent on both lot size of the buyer and production rate of the vendor, an integrated production inventory model is presented in this paper. The decision-making interaction of lead time between a buyer and a vendor in the integrated inventory model is analyzed. In terms of the model, a solution procedure has been developed to obtain th...