This paper looks at the rich intersection between satisfiability problems and probabilistic models, opening the door for the use of satisfiability approaches in probabilistic domains. A generic stochastic satisfiability problem is examined, which can function for probabilistic domains as SAT does for deterministic domains. The paper defines a Davis-Putnam-Logemann-Loveland-style procedure for s...

This paper studies the optimal control of, interaction between, and relative value of two types of flexibility under Markov models of demand and production: process flexibility and inventory flexibility. In our model, process flexibility is generated by a multi-functional production facility that can produce two types of products, and inventory flexibility is manifested in firm-driven one-way p...

a r t i c l e i n f o Keywords: Lateral transshipments Stochastic demand Wholesaler operations Inventory replenishment This paper develops a set of decision rules to assist wholesalers to decide whether it is more cost effective to transship urgent outstanding retailer orders from other wholesalers, very fast but at a higher purchase cost, or to order from their suppliers. By considering the un...

Abstract: We consider a dynamic pricing problem for a monopolistic company selling a perishable product when customer demand is uncertain and occurs in batches which must be fulfilled as a whole. The seller can price-discriminate between the batches of different size by setting different unit prices. The problem is modeled as a stochastic optimal control problem to find an inventory-contingent ...

We solve a rich logistical problem inspired from practice, in which a heterogeneous xed eet of vehicles is used for collecting recyclable waste from large containers over a nite planning horizon. Each container is equipped with a sensor, which communicates its level at the start of the day. Given a history of observations, a forecasting model is used to estimate the point demand forecasts as we...

This paper re-visits the Bayesian approach to test its efficacy in optimally designing the classical (s, Q) inventory model. A heuristic search of the unstructured (s, Q) decision space finds that one can indeed make a decent start by the Bayesian approach—and keep total cost nearly optimally low throughout.

We consider a class of single-stage, single-product Make-to-Stock productioninventory system (MTS system) with backorders. The system employs a continuous-review base-stock policy which strives to maintain a prescribed base-stock level of inventory. In a previous paper of Zhao and Melamed (Methodology and Computing in Applied Probability 8:191–222, 2006), the Infinitesimal Perturbation Analysis...

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...