This paper analyses a discrete-time (s, S) queueing inventory model with service time and back-order in inventory. The arrival of customers is assumed to be the Bernoulli process. Service follows geometric distribution. As soon as level reaches pre-assigned due demands, an order for replenishment placed. Replenishment also When reduces zero or non-replenishment items, maximum k are allowed syst...

Keywords: Assemble-to-order (ATO) Inventory Stochastic program Optimal policy Multi-dimensional newsvendor model a b s t r a c t In this paper we introduce a multi-stage stochastic program that provides a lower bound on the long-run average inventory cost of a general class of assemble-to-order (ATO) inventory systems. The stochastic program also motivates a replenishment policy for these syste...

the advent of e-commerce has prompted many manufacturers to redesign their traditional channel structure by engaging in direct sales. in this paper, we present a dual channel inventory model based on queuing theory in a manufacturer-retailer supply chain, consisting of a traditional retail channel and a direct channel which stocks are kept in both upper and lower echelon. the system receives st...

It is common wisdom that the finished goods inventory increases with the number of variants stored in that inventory. However, to the best of our knowledge, this has never been verified. This paper presents research where this relationship has been analyzed both by applying theory and through analytical simulation. The result shows that this common wisdom is not always true. The number of kanba...

We study the optimal pricing and replenishment decisions in an inventory system with a price-sensitive demand, focusing on the benefit of the inventory-based dynamic pricing strategy. We find that demand variability impacts the benefit of dynamic pricing not only through the magnitude of the variability but also through its functional form (e.g., whether it is additive, multiplicative, or other...

When the theory of constraints (TOC) supply chain replenishment system (TOC-SCRS) is deployed in a plant or a central warehouse, replenishment frequency (RF) becomes one of the important decision parameters and depends on the sales or replenishment quantity (RQ) in the plant. The higher RF is preferred by TOC for the low inventory and the fast response to different market requirements. However,...

In a supplier-customer relationship, Vendor Managed Inventory (VMI) is currently used to monitor the customer’s inventory replenishment. However the integration of VMI implies consequences on the collaboration process that links the different planning processes of each partner. This paper proposes a unified view of the VMI: beyond the short term pull system inventory replenishment, partners hav...

Inventory replenishment rules contribute significantly to the bullwhip effect and inventory instability in supply chains. Smoothing replenishment rules have been suggested as a mitigation solution for the bullwhip effect but dampening the bullwhip effect might increase inventory instability. This paper evaluates a real-time inventory replenishment system denoted as SPC that utilizes a control c...

This paper presents a multi-product multi-period inventory problem with random replenishment intervals and fuzzy costs under space and shortage level constraints. Since the costs (purchasing, holding and backordering) related to inventory system are often imprecise and the replenishment intervals are random in real life, the proposed model is also fuzzy-random Here, the replenishment intervals ...

This paper studies a one-shot inventory replenishment problem with dynamic pricing. The customer arrival rate is assumed to follow a geometric Brownian motion. Homogeneous customers have an isoelastic demand function and do not behave strategically. We find a closed-form optimal pricing policy, which utilizes current demand information. Under this pricing policy the inventory trajectory is dete...