We study the inventory control problem of a retailer working under stochastic demand and stochastic limited supply. We assume that the unfilled part of the retailer's order is fully backordered at the supplier and replenished with certainty in the following period. As it may not always be optimal for the retailer to replenish the backordered supply, we also consider the setting in which the ret...

Today, the effective inventory management plays an important role in the success of the organizations in the new business environment. It is not clearly possible for the organizations that store hundreds of inventory items to economically design an inventory management policy for each inventory item separately. Moreover, various inventory items may play quite different roles in the business ...

We developed an inventory model for decaying items with selling price dependent demand in inflationary environment. Deterioration rate is taken as two parameter Weibull distribution. Shortages in inventory are allowed with partial backlogging. Backlogging rate is taken as exponential decreasing function of time. Profit maximization technique is used in this study.

We consider a stock point for expensive, low-usage items that is operated by multiple decision makers. Each faces a Poisson demand process, and the joint stock point is controlled by a continuous-review base stock policy with full backordering. We consider penalty costs for backorders and holding costs for stock on hand. For this model, we derive structural properties of the resulting cost func...

F many companies, inventory record inaccuracy is a major obstacle to achieving operational excellence. In this paper, we consider an inventory system in which inventory records are inaccurate. The manager makes inventory inspection and replenishment decisions at the beginning of each period. There is a cost associated with each inspection. If an inspection is performed, inventory records are al...

Today, the effective inventory management plays an important role in the success of the organizations in the new business environment. It is not clearly possible for the organizations that store hundreds of inventory items to economically design an inventory management policy for each inventory item separately. Moreover, various inventory items may play quite different roles in the business ...