We study the effects of different pricing strategies available to a continuous review inventory system with capacitated supply, which operates in a fluctuating environment. The system has a single server with exponential processing time. The inventory holding cost is nondecreasing and convex in the inventory level, the production cost is linear with no set-up cost. The potential customer demand...

This paper explores qualitative effects of lead-time uncertainty in a basic continuous-time single-item inventory model with Poisson demand and stochastic lead times. The objective is to minimize the infinite-horizon expected total discounted cost. Order costs are linear, so a base-stock policy is optimal. Traditionally and intuitively, people believe that a (stochastically) longer lead time re...

We consider a randomized policy to control the M/G/1 queueing system with an unreliable server, second optional service and general startup times. The server is subject to breaking down according to a Poisson process, and the repair time obeys a general distribution. All arrived customers demand the first required service, and only some of the arrived customers demand the second optional servic...

In this paper we analyse the e ect of a cuto transaction size in a simple newsboy setting. It is assumed that customers with an order larger than a prespeci ed size are satis ed in an alternative way, against additional cost. For compound Poisson demand with discrete order sizes, we show how to determine the average cost and an optimal cuto transaction size. Because the computational e ort to c...

We examine the component procurement problem in a single-item, make-to-stock assembly system. The suppliers are uncapacitated and have independent but non-identically distributed stochastic delivery lead times. Assembly is instantaneous, product demand follows a Poisson process and unsatisfied demand is backordered. The objective is to minimize the sum of steady-state holding and backorder cost...

This paper investigate a queueing model where in customers arrive in batches according to compound Poisson process with rate λ and are served one by one in FIFO basis. All incoming customers demand the first ’essential’ service wherein only some of them demand the second ’optional’ service. The service times of both essential and optional services follow arbitrary(general)distribution with diff...

This paper assumes that the demand is a Poisson random process, the inventory strategy is (s, S), each demand amount Q* is same, scale of the economic transport quantity Q0=p Q* (p is a positive integer), in which Q* is the optimal order quantity of joint pricing used by the supplier and retailer, and the supplier will be entitled to ignore small group of temporary order bills to accumulate the...

We consider a two-stage serial inventory system whose cost structure exhibits economies of scale in both stages. In the system, stage 1 faces Poisson demand and replenishes its inventory from stage 2, and the latter stage in turn orders from an outside supplier with unlimited stock. Each shipment, either to stage 2 or to stage 1, incurs a fixed setup cost. We derive important properties for a g...

In this paper, we establish an exact framework for a class of supply chains with at most one directed path between every two stages. External demands follow compound Poisson processes, the transit times are stochastic, sequential, and exogenous, and each stage controls its inventory by an installation base-stock policy under continuous review. Unsatisfied demand at each stage is fully backorder...