Most of the studies on inventory control reported in earlier contributions deal with the optimization problems minimizing an expected cost criterion such as the long-run average cost. However, when the plant engineers design the inventory systems in practical situations, they must take account of reliability into the inventory system as well as economical aspect, where reliability can be define...

The purchasing policy of spare parts for maintenance and the reverse inventory chain logistics has been attracting researcher’s attention in recent years. In spare parts (SP) inventory control the aim is to maintain the inventory at an optimal level and to minimize the purchasing and the inventory costs. This paper deals with integration of the recycled spare parts in the economic models of inv...

We study stochastic inventory planning systems with lost sales and censored demand under stationary and non-stationary settings. Contrary to classical inventory theory, we assume that no knowledge of demand is initially available, and lost sales in each period are unobservable. We take a non-parametric approach and propose adaptive inventory policies that generate a sequence of ordering decisio...

A important issue in the management of supply chains and manufacturing systems is to control inventory costs at different locations throughout the system while satisfying an end-customer service-level requirement. The challenge involved is to solve a nonlinear constrained optimization problem that captures the key dynamics of a complex production-inventory system. In this paper, we first develo...

We recently introduced a new stochastic Petri net model called “batch deterministic and stochastic Petri nets” (BDSPNs) capable of describing the synchronization of discrete and batch token flows in discrete batch processes. It is a powerful formal model for the study of inventory systems and supply chains where materials are processed or ordered in finite discrete quantities (batches) and many...

We analyze and compare three (s,S) inventory systems with positive service time and retrial of customers. In all of these systems, arrivals of customers form a Poisson process and service times are exponentially distributed. When the inventory level depletes to s due to services, an order of replenishment is placed. The lead-time follows an exponential distribution. In model I, an arriving cust...

Coordination of Supply Chain Inventory Systems with Private Information. (December 2006) Chi-Leung Chu, B.B.A., The Chinese University of Hong Kong; M.B.A., University of New Mexico; M.S., Case Western Reserve University Chair of Advisory Committee: Dr. V. Jorge Leon This dissertation considers the problems of coordinating different supply chain inventory systems with private information under ...

This paper implements the inventory model developed in the first part of this paper in a simplified problem to simultaneously reduce costs and risks in JIT systems. This model is developed to ascertain an optimal ordering strategy for procuring raw materials by using regular multi-external and local backup suppliers to reduce the total cost of the products, and at the same time to reduce the ri...

Among both inventory theorists and practitioners, it is common use to include an opportunity cost rate in the holding cost rate. In that way, the cost of capital can be roughly incorporated in an average cost (AC) inventory model. The traditional way for calculating the opportunity cost rate is to multiply the interest rate (or discount rate) by the marginal cost for producing/ordering an item....

W study inventory pooling in systems with symmetric costs where supply lead times are endogenously generated by a finite-capacity production system. We investigate the sensitivity of the cost advantage of inventory pooling to various system parameters, including loading, service levels, demand and production time variability, and structure of the production system. The analysis reveals differen...