– All-unit order frequency discount • 94%-effective policy for a variable base period – Incremental order frequency discount • 94%-effective policy for a fixed base period • 98%-effective policy for a variable base period Introduction • A supply chain is a network of facilities that procure raw materials, transform them into intermediate goods and then final products, and deliver the products t...

Abstract Interaction effect across complementary products plays an important role in characterizing the optimal inventory policy. The levels of are interrelated due to interaction between demand streams. In this paper, we consider a periodic review base-stock policy presence two with demands and joint replenishment. Demands modeled by Poisson process any unmet is lost. can be sets one unit each...

Inventory record inaccuracy is a significant problem for retailers using automated inventory management systems. While investments in preventative and corrective measures can be effective remedies, gains can also be achieved through inventory management tools that account for record errors. In this paper, we consider intelligent inventory management tools that account for record errors using a ...

This paper studies a perishable inventory model, which assumes that each perishable item has finite lifetime, and only one item is consumed each time. The lifetimes of perishable items are independent random variables with the general distribution and so are the consumption internal. Under this assumption, by using backward equations and limit distribution of Markov skeleton processes, this pap...

Firms use inventory and interruption insurance to manage disruption risk in their production chains. They also take preparedness actions to reduce the expected length of disruptions. We analytically explore these three measures in a two-stage production chain. We find that inventory and preparedness differ in their responses to insurance and to production-chain cost and risk characteristics. We...

Inventory control of spare parts is essential to many organizations, since excess inventory leads to high holding costs and stock outs can have a great impact on operations performance. This paper proposes a methodology for effective spare parts inventory control, motivated by a case study at a large oil refinery. Different demand modeling techniques and inventory policies are evaluated using r...