This paper deals with the determination of production-shipment policy for an integrated vendor-buyer system. The inventory model contains two decision variables: the replenishment lot size and the number of deliveries. This paper solves the inventory model considering two cases: 1) the replenishment lot size as continuous variable and the number of shipments as discrete variable, and 2) the rep...

We consider a single-period inventory model where there are risks associated with the uncertainty in demand as well as supply. Furthermore, the randomness in demand and supply is correlated with the …nancial markets. Recent literature provides ample evidence on this issue. The inventory manager may then exploit this correlation and manage his risks by investing in a portfolio of …nancial instru...

In this paper we propose a new discrete time discrete state inventory model for perishable items of a single product. Items in stock are assumed to belong to one of a finite number of quality classes that are ordered in such a way that Class 1 contains the best quality and the last class contains the pre-perishable quality. By the end of each epoch, items in each inventory class either stay in ...

The standard inventory problems of multi-period have been modeled under different situations, namely we consider whether demand subjects to a continuous distribution or a discrete distribution and whether demand of each period is unchanged or not. A method to get an economic order quantity in inventory systems with discrete and unchanged demand was presented in former paper and this method has ...

We study a periodic-review production/inventory control problem where both the supply of raw material and demand for the finished product are exogenous and random, the raw material can be stored for future use, can be purchased from or sold to an outside market. We study both the lost sales and backlogging cases under both strict convex and linear raw material purchasing/selling costs. Convexit...

We consider a single stage multi-product manufacturing facility producing a large number of end-products for delivery within a service constraint for the customer lead-time. The manufacturing facility is modeled as a multi-product, multi-priority queuing system. In order to reduce inventory costs, an efficient priority allocation between items consists in producing some items according to a Mak...