Closed loop supply chain aims at integrating return products in the traditional supply chain processes. The return flows generate new uncertain elements (returns and leadtimes) and optimization of inventory control in this context is a complex issue. Inventory policies have to generate good performances (service level, cost) and be easy to implement in practice. A supply chain model based on si...

We analyse a single echelon single item inventory system where the demand and the lead time are stochastic. Demand is modelled as a compound Poisson process and the stock is controlled according to a continuous time order-up-to level policy. We propose a new method for determining the optimal order-up-to level for a cost oriented inventory systems where unfilled demands are backordered. The con...

We consider a two echelon supply chain: a single retailer holds a finished goods inventory to meet an i.i.d. customer demand, and a single manufacturer produces the retailer’s replenishment orders on a make-to-order basis. In this setting the retailer’s order decision has a direct impact on the manufacturer’s production. It is a well known phenomenon that inventory control policies at the retai...

One of the most common practical inventory control problems is considered. A single-echelon inventory system is controlled by a continuous review (R,Q) policy. The lead-time demand is normally distributed. We wish to minimize holding and ordering costs under a fill rate constraint. Although, it is not especially complicated to derive the optimal solution, it is much more common in practice to u...

Model predictive control (MPC) is presented as a robust, flexible decision framework for dynamically managing inventories and satisfying customer demand in demand networks. In this paper, a formulation and the benefits of an MPC-based, control-oriented tactical inventory management system meaningful to the semiconductor industry are presented via two significant examples. The translation of ava...

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...

Managing inventories is crucial to the objective of minimizing supply chain costs. This paper presents an approach for setting inventory norms in context of a real-life case of an industry which practices Vendor Managed Inventory (VMI). The role of warehouses and the inventories held by them becomes significant in such an environment. This paper presents a two-phase approach to determine variou...

This paper considers a two-echelon distribution system which consists of a single warehouse serving N (possibly non-identical) retailers that face discrete stochastic demand of the customers. The warehouse orders from an exogenous supplier with ample stock. Orders arrive at the warehouse after a fixed leadtime. The warehouse satisfies, if possible, the replenishment requests from the retailers....