We present a problem on risk pooling and cost allocation in inventory of spare parts motivated in the oil and gas sector. Spare parts are held to facilitate operational conditions. Multiple inventory plants control their stock per separate. In practice, however, they supply each other when needed. Risk pooling is a source of savings in this situation. Under a centralized inventory solution, the...

In this paper, we study a production-inventory systems with finite production capacity and fixed setup costs. The demand process is modeled as a mixture of a compound Poisson process and a constant demand rate. For the backlog model we establish conditions on the holding and backlogging costs such that the average-cost optimal policy is of (s, S)-type. The method of proof is based on the reduct...

In planning and scheduling of production systems manufacturers have two main strategies for responding to uncertainty: they build inventory to hedge against periods in which the production capacity is not suucient to satisfy demand, or they temporarily increase the production capacity. We consider the problem of minimizing the long-run average cost of holding inventory and/or purchasing extra c...

Abstract: Inventory control systems development is one of the most appealing issues of the supply chain management which have recently been studied by academicians and practitioners. In this paper, an inventory management framework and deterministic cost models within the context of this framework are structured for effective supply chain (SC) in an agile environment. To do so, we propose a thr...

We consider a two-stage production-inventory system. Each stage is made of an exponential production server and an output inventory. The downstream inventory faces a Poisson demand and each inventory receives product returns that can be either accepted or rejected. The objective is to find a production/admission policy minimizing the expected discounted costs over an infinite horizon. We consid...

This paper considers a problem of integrated decision-making for job scheduling and delivery batching wherein different inventory holding costs between production and delivery stages are allowed. In the problem, jobs are processed on a facility at a production stage and then delivered at the subsequent delivery stage by a capacitated vehicle. The objective is to find the coordinated schedule of...

Food consumption surveys are performed in many countries. Comparison of results from those surveys across nations is difficult because of differences in methodological approaches. While consensus about the preferred methodology associated with national food consumption surveys is increasing, no inventory of methodological aspects across continents is available. The aims of the present review ar...

An inventory model for deteriorating items with stock and price dependent demand is developed. Holding cost is considered as function of time. Shortages are allowed and completely backlogged. Numerical example is provided to illustrate the model and sensitivity analysis is also carried out for parameters.

We consider a well-known NP-hard deterministic inventory control problem: the One-Warehouse Multi-Retailer (OWMR) problem. We present a simple combinatorial algorithm to recombine the optimal solutions of the natural single-echelon inventory subproblems into a feasible solution of the OWMR problem. This approach yields a 3approximation. We then show how this algorithm can be improved to a 2-app...