The lifecycles of many products are becoming shorter and shorter as innovation and timeto-market become key aspects of modern corporations' success in the marketplace. Few methods for inventory management exist that are capable of contending with product lifecycles measured in months rather than years. This situation is especially acute in the semiconductor industry, where a single generation o...

We explore the management of inventory for stochastic-demand systems, where the product’s supply is randomly disrupted for periods of random duration, and demands that arrive when the inventory system is temporarily out of stock become a mix of backorders and lost sales. The stock is managed according to the following modified (s , S) policy: If the inventory level is at or below s and the supp...

We consider a multi-product serial two echelon inventory system with stochastic demand. Inventories at the downstream location are replenished periodically using an automatic ordering system. Under vendor managed inventory strategies the upstream stage is allowed to adapt these orders in order to benefit from economies of scale. We propose three different VMI strategies, aiming to reduce the or...

A stochastic multiproduct capacitated facility location problem involving a single supplier and multiple customers is investigated. Due to the stochastic demands, a reasonable amount of safety stock must be kept in the facilities to achieve suitable service levels, which results in increased inventory cost. Based on the assumption of normal distributed for all the stochastic demands, a nonlinea...

Motivated by empirical observations, we assume that the inventory level of a company follows a mean reverting process. The objective of the management is to keep this inventory level as close as possible to a given target; there is a running cost associated with the difference between the actual inventory level and the target. If inventory deviates too much from the target, management may perfo...

We develop the optimal trading strategy for our broker who has non-zero inventory in three currency pairs with different level of liquidity and would like to o ff-load all inventories with a given time schedule while accepting exogenous clients orders. The mid-exchange rate satisfies constraint to exclude the triangle arbitrage. Our broker is risk-neutral, inventory averse and would like to max...

A manufacturing facility consisting of two stations in tandem operates in a maketo-stock mode: after production, items are placed in a finished goods inventory that services an exogenous demand. Demand that cannot be met from inventory is backordered. Each station is modelled as a queue with controllable production rate, and the problem is to control these rates to minimize inventory holding an...

Considering the competition in today’s business environment, tactical planning of a supply chain becomes more complex than before. In many multi-product inventory systems, substitution flexibility can improve profits. This paper aims to prepare a comprehensive substitution inventory model, where an inventory system with two substitute products with ignorable lead time has been considered, and e...

We make a novel connection between an energy-efficient wireless transmission scheduling problem and a multi-period, multi-item inventory control problem with stochastic convex ordering costs, deterministic demands, and a joint budget constraint. In the special case of a single item, we show that a state-dependent modified base-stock policy is optimal when the stochastic ordering costs are linea...

The Internet revolution has resulted in increased competition among providers of goods and services to lure customers by tearing down the barriers of time and distance. For example, a home buyer shopping for a mortgage loan through the Internet is now a potential customer for a large number of lending institutions throughout the world. The lenders (players, in generic game theory nomenclature) ...