Customers and downstream supply chain partners often place, or can be induced to place, orders in advance of future requirements. We show how to optimally incorporate advance demand information into periodic-review, multiechelon, inventory systems in series. While the state space for series systems appears to be formidably large, we decompose the problem across locations, as in Clark and Scarf ...

Click tracking is gaining in popularity and the practice of web analytics is growing fast. Can operations managers benefit from click tracking? Tingliang Huang and Jan Van Mieghem consider firms that feature their products on the Internet but take orders offline. Click and order data are disjoint on such non-transactional websites and their matching is error-prone. Yet, their time separation ma...

We consider a make-to-stock supplier who operates a production facility with limited capacity. The supplier receives orders from customers belonging to several demand classes. Some of the customer classes share advance demand information with the supplier by announcing their orders ahead of their due date. However, this advance demand information is not perfect because the customer may decide t...

Demand information can easily be shared in advance with the use of the latest technologies in the supply chain. Advance demand information can be used to compensate demand uncertainty and decrease inventory costs. In order to benefit from advance demand information, it should be effectively integrated into the system. In this paper, we examine a production-inventory system with multiple classes...

The product life cycle of a deteriorating is an important consideration in inventory management. This paper simultaneously investigates the optimum pricing and decisions considering cycles under price-dependent demand advance payment systems with discount facility. A time-dependent holding cost also introduced. objective to carefully balance critical decision variables order maximize total prof...

Why did the volatility of U.S. real GDP decline by more than the volatility of final sales with the Great Moderation in the mid-1980s? One possible explanation is that firms shifted their inventory behaviour towards a greater emphasis on production smoothing. In this paper, we investigate the role of inventories in the Great Moderation by estimating an unobserved components model that identifie...

To formulate a single-leg seat inventory control problem in an airline ticket sales system, the concept and techniques of revenue management are applied in this research. In this model, it is assumed the cabin capacity is stochastic and hence its exact size cannot be forecasted in advance, at the time of planning. There are two groups of early-reserving and late-purchasing customers demanding t...

Abstract In this paper, we study a stochastic single-item, single-stage inventory system, in which orders from several production facilities are placed at one warehouse. An ( R , Q ) policy is applied to control the warehouse, and arrive according Poisson process include due date such that some information about future demand available. This advance (ADI) can be used adapt time-based shipment c...