In warehouses, storage replenishment operations involve the transportation of items to capacitated item slots in forward area from reserve storage. These are later picked these as demand arises. While order picking constitutes majority warehouse operating costs, efficient management is important ensure availability for and decrease costs due replenishment, which might be particularly higher war...

This paper studies spare part transshipments between two service part facilities whose demands are correlated. Transshipments are used to reduce severity of part stock outs. Facilities are run by an inventory manager (IM) who minimizes replenishment, transshipment, and inventory costs. We show that the optimal transshipment policy is an inventory hold-back type; if the part inventory at a facil...

In this paper, we study managers’ errors in decision making for inventory replenishment and how these errors affect their inventory system. In particular, primarily for its expected relationship with the bullwhip effect, we focus on the error of the over-reaction to demand changes and a common contributor of decision making biases: forecasting of demand. By over-reaction we mean that the manage...

We study a two echelon supply chain with AR(1) demand and unit replenishment lead-times. Each echelon of the supply chain uses conditional expectation to generate MMSE forecasts. Both echelons use these forecasts inside the “Order-Up-To” policy to generate replenishment orders. We investigate 3 different scenarios: The first is when each echelon aims to minimize their own inventory holding and ...

The use of VMI at Wal-Mart on a large scale has attracted a great deal of attention in the industrial world. In a VMI program, the supplier assumes control of the inventory management for one or more retailers (Fry, 2002). The supplier monitors the inventory level at the retailers and makes the decisions related to the quantities of replenishment and the timing of shipments to the retailers. It...

We study an inventory system that supplies price-sensitive demand modeled by Brownian motion, focusing on the optimal pricing and inventory replenishment decisions, under both long-run average and discounted objectives. Analytical solutions are obtained in all cases, and related to or contrasted against previously known results. In addition, we bring out the interplay between the pricing and th...

An inventory system for non-instantaneous deteriorating items with price-dependent demand is formulated and solved. A model is developed in which shortages are allowed and partially backlogged, where the backlogging rate is variable and dependent on the waiting time for the next replenishment. The major objective is to determine the optimal selling price, the length of time in which there is no...

The joint replenishment of inventory problem (JRP) requires independence of minor ordering costs. In this paper we propose an evolutionary algorithm (EA) for a modification of the JRP. The modified JRP allows for interdependence of minor ordering costs. Our proposed EA (EARP) is a nested EA that searches for a solution to minimize the total cost of inventory replenishment. It combines an EA whi...