The recent plunge in U.S. home prices left many households that had borrowed voraciously during the credit boom highly leveraged, meaning that they had very high levels of debt relative to the value of their assets. Analysts often assert that this “debt overhang” created a need for household deleveraging that, in turn, has been depressing consumer spending and impeding the economic recovery. Th...

We study a single-product periodic-review inventory model in which the ordering quantity is either zero or at least a minimum order size+ The ordering cost is a linear function of the ordering quantity, and the demand in different time periods are independent random variables+ The objective is to characterize the inventory policies that minimize the total discounted ordering, holding, and backo...

This paper considers the basic economic order quantity (EOQ) model when all parameters, such as the demand rate, the ordering cost, and the inventory holding cost, are uncertain, and furthermore, their probability information is also unknown. To address the uncertainty, we adopt a robustness-based approach. In this approach, each unknown parameter is described as a continuous value restricted t...

This paper explores the short-run price-inventory dynamics in the presence of different shocks. Classical competitive storage model states that inventory decision considers both current and future market condition, and thus interacts with spot and expected future spot prices. We study competitive storage holding in an equilibrium framework, focusing on the dynamic response of price and inventor...

In this paper we study a type of production-inventory system in which the production and demand rates are modulated by a background state process modeled as a finite state Continuous Time Markov Chain (CTMC). When the production rate exceeds the demand rate, the inventory level increases, and when the demand rate exceeds the production rate, it decreases. When the inventory level reaches zero, ...

An important aspect of retail outlets which offer different kinds of fresh meat is the careful planning of inventory. In this context, inventory management includes ensuring the required quantity of meat, storing it in an adequate way, and also minimizing the setup cost, holding cost, shortage cost and possible losses that might occur if the goods remain unsold. By devising and applying appropr...

This paper presents a hybrid Decision Support System (DSS) for slow moving spare parts joint replenishment in a nuclear power plant. In this study, we integrate the fuzzy and grey theory-based spare parts criticality class evaluation model to confirm the target service level, and the web-based joint replenishment DSS to obtain reasonable purchase parameters that can be helpful for reducing tota...

W introduce and analyze a model that explicitly considers the timing effect of intertemporal pricing— the concept, found in practice, that demand during a sale is increasing in the time since the last sale. We present structural results that characterize the interaction between the decision to hold a sale and the inventory-ordering decision. We show that the optimal inventory-ordering policy is...

Among both inventory theorists and practitioners, it is common use to include an opportunity cost rate in the holding cost rate. In that way, the cost of capital can be roughly incorporated in an average cost (AC) inventory model. The traditional way for calculating the opportunity cost rate is to multiply the interest rate (or discount rate) by the marginal cost for producing/ordering an item....