The simultaneous stochastic pricing and inventory management with capacitated cash-on-hand is a profit maximization problem faced by a firm, which has limited working capital for its liabilities. In addition to this working capital constraint, the company has to dynamically price its products and determine inventory levels to minimize its expected cost. In our study, we tackle this complicated ...

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...

In this paper a new non-switching type reaching law for sliding mode control of discrete time systems is introduced and applied to the problem of periodic review inventory management. The considered inventory is refilled by multiple suppliers through delivery channels subject to non-negligible commodity losses. The reaching law proposed in this paper is inspired by the earlier work of Gao, Wang...

We analyze an infinite horizon, single-product, periodic review model in which pricing and production/inventory decisions are made simultaneously. Demands in different periods are identically distributed random variables that are independent of each other, and their distributions depend on the product price. Pricing and ordering decisions are made at the beginning of each period, and all shorta...

Inventory managers are responsible for the trade-off between inventory holding costs and customer service. In this paper we consider a periodic review multi-item system with exogenous lot-sizes backordering. The objective is to minimize total subject constraint that aggregate fill rate should be at least equal target level. weighted average of rates all items in assortment. We three ways defini...

We consider a variant of the periodic review system with a virtual warehouse that is due to Eppen and Schrage (1981). Depending on the realized pattern of demand during the delivery leadtime, this inventory is dynamically allocated or rationed to each of the retailers. While Eppen and Schrage (1981) assume that all unfilled demand is backordered, we allow some demand to be rejected to keep inve...

In this paper, a new algorithm for computing optimal (s, S) policies is derived based upon a number of new properties of the infinite horizon cost function c(s, S) as well as a new upper bound for optimal order-up-to levels S* and a new lower bound for optimal reorder levels s*. The algorithm is simple and easy to understand. Its computational complexity is only 2.4 times that required to evalu...

In this paper we present a model and solution procedures of the Inventory Routing Problem (IRP) encountered in vending machine supply chains working under vendor-managed inventory (VMI) scheme. The new IRP model is built based on the existing Periodic Vehicle Routing Problem with Time-windows (PVRPTW). The model will be referred to as the Integrated Inventory and Periodic Vehicle Routing Proble...