One of the most important policies adopted in inventory control is the (R,S) policy (also known as the “replenishment cycle” policy). Under the non-stationary demand assumption the (R,S) policy takes the form (Rn,Sn) where Rn denotes the length of the n th replenishment cycle, and Sn the corresponding order-up-to-level. Such a policy provides an effective means of damping planning instability a...

Aimed at the possibility of stock-out of the traditional retail channel under stochastic demand in a dual-channel supply chain, we propose a cooperative inventory strategy, in which the excess demand of the traditional retail channel is complemented by the excess inventory of the manufacturer’s direct channel through transshipment. We establish a newsboy model to analyse each supply chain membe...

Consider an inventory system with multiple supply sources and Poisson demand. The replenishment leadtimes from each source are stochastic, representing congestion and disruption. We develop performance evaluation and optimization tools for a family of reasonable order policies. These policies take into account real-time supply information, which can be obtained through tracking technologies suc...

The classical risk-neutral newsvendor problem is to decide the order quantity to maximize the one period expected pro.t under a given demand distribution. In this paper we consider a risk-averse newsvendor with a stochastic price-dependent demand. We use the Conditional Value-at-Risk (CVaR), a risk measure commonly used in finance, as the decision criterion. The aim of our study is to investiga...

In this paper we prove some stochastic comparisons results for progressive type II censored order statistics. The problem of stochastically comparing concomitants of the two progressive type II censored order statistics with possibly different schemes, under different kinds of dependence between X and Y is considered and it is proved that if Y is stochastically increasing (decreasing) in X, ...

Supply Chain operation is an integrated business process starting from primary supplier to end user and the process produce products, services and information. A successful chain will explore technology, lean operations, and quality management by adding value for customers and stakeholders. It is a strategic alliance among the partnering enterprises without geographical boundary. Every chain ha...

There is a growing consensus that a portfolio of customers with different demand lead times can lead to higher, more regular revenues and better capacity utilization. Customers with positive demand lead times place orders in advance of their needs, resulting in advance demand information. This gives rise to the problem of finding effective inventory control policies under advance demand informa...

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...

We study the joint inventory and sales effort management problems of a retailer in a broad context and investigate the optimal policies for a single item, periodic-review system. In each period, the demand is uncertain depending on the sales effort level exerted by the retailer, which incurs an associated cost. The retailer’s objective is to find a joint optimal inventory replenishment and sale...

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...