We consider an N -stage serial supply chain with random demand, and study the problem of minimizing average inventory-holding cost subject to a pre-specified fill-rate constraint. Since the form of the optimal policy is unknown, we focus on base-stock policies. We present a bottom-up recursive procedure for policy evaluation and develop bounds on the optimal basestock levels. Using these bounds...

We investigate a two-stage serial supply chain with stationary stochastic demand and fixed transportation times. Inventory holding costs are charged at each stage, and each stage may incur a consumer backorder penalty cost, e.g. the upper stage (the supplier) may dislike backorders at the lower stage (the retailer). We consider two games. In both, the stages independently choose base stock poli...

This paper investigates the optimal inventory replenishment policy for an economic production quantity (EPQ) model with backordering, rework and machine breakdown taking place in stock piling time. A prior paper by Chiu has examined the lot-sizing problem on an imperfect quality EPQ model. Due to another reliability factor random machine breakdown seems to be inevitable in most real world manuf...

Companies commonly allocate their inventories across multiple locations based on their historical sales rates. However, random fluctuations in customer purchases, such as those caused by weather conditions and other external factors, might cause significant deviations from expected demand, leading to excess stock in some locations and stockouts in others. To fix this mismatch, companies often t...

In this paper, a multi-product multi-chance constraint joint single-vendor multi-buyers inventory problem is considered in which the demand follows a uniform distribution, the lead-time is assumed to vary linearly with respect to the lot size, and the shortage in combination of backorder and lost-sale is assumed. Furthermore, the orders are placed in multiple of packets, there is a limited spac...

Corresponding Author: Yi Lin Graduate Institute of Industrial and Business Management, National Taipei University of Technology, No. 1, Sec. 3, Zhongxiao E. Rd., Taipei City 106, Taiwan E-mail: [email protected] Abstract: This paper mainly focuses on the discussion of the best economic production quantity of process unreliable and defective items reproduce of the production system. In today'...

Aggregate production planning (APP) is considered as mid-term decision planning. The purpose of multiperiod APP is to set up overall production levels for each product category to meet fluctuating or uncertain demand in the near future and to set up decisions and policies on the subject of hiring, lay-offs, overtime, backorder, subcontracting, facilities and inventory. In this study, we develop...

T is now an extensive theoretical literature investigating optimal inventory policies for retailers. Yet several recent reviews have recognized that these models are rarely applied in practice. One explanation for the paucity of practical applications is the difficulty of measuring how stockouts affect both current and future demand. In this paper, we report the findings of a large-scale field ...

In this paper we investigate four sourcing models with respect to both cooperative or noncooperative planning strategies, and sole or dual sourcing. A two-stage supply chain is considered, which includes a single buyer and either a single or dual vendor(s). At the buyer the product is consumed at a constant rate, and an (r, Q) policy is used to generate replenishment orders. The vendors have a ...

In some real inventory systems, item sales can be adjusted to a stable demand rate along the cycle. For instance, home appliances, electrical products, lounge furniture, water supply, etc., are items with rate. this work, we analyze an system for of type, where is constant. Shortages allowed, and it assumed that fraction during stock-out period backlogged. It supposed shortage costs (backorder ...