We study ex ante information sharing in a supply chain consisting of a downstream retailer and a maketo-stock upstream manufacturer. The retailer has imperfect demand information and may choose to share it with the manufacturer. Based on the information sharing arrangement, the manufacturer makes the wholesale price and the stocking level decisions. Then the retailer decides the order quantity ...

Motivated by practices in modern supply chains, we consider capacity-inventory joint management for a make-to-stock manufacturing system operating under a base stock policy. The production facility is modeled as multiple servers operating in parallel. The number of servers corresponds to the capacity decision and the base stock level is the inventory decision. The main problem which we consider...

We consider optimal policies for a production facility in which several (K) products are made to stock in order to satisfy exogenous demand for each. The single machine version of this problem in which the facility manufactures at most one product at a time to minimise inventory costs has been much studied. We achieve a major generalisation by formulating the production problem as one involving...

A single machine produces several different classes of items in a make-to-stock mode. We consider the problem of scheduling the machine to regulate finished goods inventory, minimizing holding and backorder or holding and lost sales costs. Demands are Poisson, service times are exponentially distributed, and there are no delays or costs associated with switching products. A scheduling policy di...

We consider the dynamic scheduling of a two-part-type make-tostock production system using the model of Wein [12]. Exogenous demand for each part type is met from finished goods inventory; unmet demand is backordered. The control policy determines which part type, if any, to produce at each moment; complete flexibility is assumed. The objective is to minimize average holding and backorder costs...

In this paper we study Make-To-Stock manufacturing systems and generalize the results obtained in Panayiotou et al. (2002). Specifically, we use the same modeling framework to derive sample derivatives of the objective function of interest with respect to buffer capacities (hedging points). In the earlier work, the input processes (machine processing and demand) were assumed piecewise constant....

A single-stage Make-to-Stock (MTS) production-inventory system consists of a production facility coupled to an inventory facility, and is subject to a policy that aims to maintain a prescribed inventory level (called base stock) by modulating production capacity. This paper considers a class of single-stage, singleproduct MTS systems with backorders, driven by random demand and production capac...

We consider the problem of dynamically allocating production capacity between two products to minimize the average inventory and backorder costs per unit time in a make-to-stock single machine system. Using sample path comparisons and dynamic programming, we give a characterization of the optimal hedging point policy for a certain region of the state space. The characterization is simple enough...

Hossein Abouee-Mehrizi Joseph L. Rotman School of Management, University of Toronto, Toronto, M5S 3E6, CANADA, [email protected] Barış Balcıog̃lu Department of Mechanical and Industrial Engineering, University of Toronto, Toronto, ON M5S 3G8, CANADA, [email protected] Opher Baron Joseph L. Rotman School of Management, University of Toronto, Toronto, M5S 3E6, CANADA, Opher.Baron@R...

In an Enterprise network, several companies interact to produce families of goods. Each member company seeks to optimize his own production and inventory policy to maximize his profit. These objectives are generally antagonistic and can lead to contradictory choices in the context of a network with a high degree of local decisional autonomy. To avoid a global loss of economic efficiency, the ne...