We study a stochastic lead-time problem motivated by real world global shipping data. Replenishment quantities are generated by the Order-Up-To policy which aims to achieve a strategic availability target. We show that unlike the constant lead-time case, minimum safety stocks do not always lead to minimum costs under stochastic lead-times.

The two critical factors distinguishing inventory management in a multifirm supply-chain context from the more traditional centrally planned perspective are incentive conflicts and information asymmetries. We study the well-known order quantity/reorder point (Q r) model in a two-player context, using a framework inspired by observations during a case study. We show how traditional allocations o...

As a means of avoiding stock‐outs, safety stocks play an important role in achieving customer satisfaction and retention. However, traditional safety stock theory is based on the assumption of the immediate delivery of the ordered products, which is not a common condition in business‐to‐business contexts. Virtual safety stock theory was conceived to ...

In the pharmaceutical industry, clinical trials constitute a critically important and very expensive part of the new drug development process. A clinical trial supply chain will terminate after 1-2 years, and leftovers at the end of clinical trials constitute an important financial cost since all the unused materials should be disposed after clinical trial completion. Normally, extra safety sto...

We generalize the guaranteed-service (GS) model for multi-echelon safety stock placement to include capacity constraints. We first develop an extension of the single-stage base-stock model to include a capacity constraint. We then use this result to model a multi-stage system with a base-stock operating policy. We establish that we can adapt the existing algorithms for the unconstrained case to...

This study extends the application of behavioral portfolio optimization by estimating return stocks (B-stocks). With cause-and-effect relationships respective irrational behaviors on stock price movements and unique information provided B-stocks in terms knowing with a calculated probability when (time duration) specific effect (e.g., positive cumulative abnormal return) after certain trigger p...

The life cycle of new products is becoming shorter and shorter in all markets. For electronic products, life cycles are measured in units of months, with six to twelve-month life cycles being common. Given these short product life-cycles, product demand is increasingly difficult to forecast. Furthermore, demand is never really stationary as the demand rate evolves over the life of the product. ...

Eight major policies were implemented by Japanese Government since Oct. 2001, to deal with bovine spongiform encephalopathy (BSE). These are; 1) Surveillance in farm by veterinarian, 2) Prion test at healthy 1.3mi cows/yr, by veterinarian, 3) Elimination of specified risk material (SRM), 4) Ban of MBM for production, sale use, 5) Prion test for fallen stocks, 6) Transparent information and trac...

A safety-first investor maximizes expected return subject to a downside risk constraint. w Arzac and Bawa Arzac, E.R., Bawa, V.S., 1977. Portfolio choice and equilibrium in capital x markets with safety-first investors. Journal of Financial Economics 4, 277–288. use the Value at Risk as the downside risk measure. The paper by Gourieroux, Laurent and Scaillet estimates the optimal safety-first p...