This paper presents the new mathematical model for determining the optimal ordering policy for industrial and commercial companies. In the previous research, the numerous inventory models under inflationary conditions have been developed. In these models, the demand rate, usually, has been considered constant and well known, time-varying, stock dependent or price-dependent. But, the demand rate...

While the development and application of inventory control models of deterioration products is one of the main concerns of researchers and practitioners, most studies done in this field have focused on inventory models under fixed supply lead time assumption. In this paper, at first we study researches done in inventory control of deteriorating items and classify them based on modeling approach...

We consider a segment of a supply chain comprising an inventory system and a transportation system that cooperate in the fulfillment of stochastic customer orders. The inventory system is operated under a discrete time (s, q) policy with backorders. In a system of this kind accumulated backorders introduce lumpiness of transportation demand into the system. We study the connection between the s...

The given research fulfils the evaluation of the efficiency of application of two universal simulation packages ExtendSim 8 and AnyLogic 6.7 for inventory control system simulation. In the study twenty eight evaluating criteria have been developed which are distributed in five groups: general, programming aspects, visualization, simulation and user support. As an object of the simulation the in...

We introduce a technique called Concave, Adaptive Value Estimation (CAVE) to approximate recourse functions found in stochastic programs. CAVE constructs a sequence of concave (or convex) piecewise-linear approximations using sample gradients of the recourse function at di erent points in the domain. The result is a nonlinear approximation that is more responsive than traditional stochastic qua...

In this work, we consider a multi-period inventory model with raw material procurements done via a reverse auction. Bids are multi-dimensional and they consist of supplier information of price, shortage quantity and lead time. This work is an extension of our earlier work that has integrated single-period inventory models with multidimensional procurement auctions to multi-period settings. The ...

In this paper we discuss stochastic Economic Lot Scheduling Problems (ELSP), i.e., settings where several items need to be produced in a common facility with limited capacity, under significant uncertainty regarding demands, production times, setup times, or combinations thereof. We propose a class of production/ inventory strategies for stochastic ELSPs and describe how a strategy which minimi...

Managing supply chains in today’s distributed manufacturing environment has become more complex. To remain competitive in today’s global marketplace, organizations must streamline their supply chains. The practice of coordinating the design, procurement, flow of goods, services, information and finances, from raw material flows to parts supplier to manufacturer to distributor to retailer and fi...

We study an Inventory Routing Problem in which the supplier has a limited production capacity and the stochastic demand of the retailers is satisfied with procurement of transportation services. The aim is to minimize the total expected cost over a planning horizon, given by the sum of the inventory cost at the supplier, the inventory cost at the retailers, the penalty cost for stock-out at the...