The decision to select one of the two accounting methods for inventory valuation – first-in, first-out (FIFO) and last-in, first-out (LIFO) – involves consideration of several factors of which potential tax effect of the accounting method is often the most important. While the general relationships of inflation, inventory levels, rate of taxation, etc., to the potential tax savings have been we...

Consider stochastic production-inventory control problem in which there are multiple capacity sources, multiple heterogeneous products, non-stationary demand and time-varying costs. If shortage costs can be evaluated the natural objective is to minimize expected production, inventory and shortage costs. Otherwise one can use service level requirements as target inventory while trying to minimiz...