Most research on supply chain management deals with settings where firms do not voluntarily get rid of inventory in the system. Since voluntary inventory reductions are often observed in practice, in this paper, we propose a (multi-echelon) model where the firm can dispose of excess stock through sales in the secondary market at each stage in the supply chain. What are called nested echelon bas...

A two-stage inventory system is considered where Poisson demand occurs at Stage 1, and Stage 1 replenishes its inventory from Stage 2, which in turn orders from an outside supplier with unlimited stock. Each shipment, either to Stage 2 or to Stage 1, incurs a fixed setup cost. Under the assumption that the supply leadtime at Stage 2 is zero, we characterize a simple heuristic policy whose long-...

In this paper, we consider a supply chain model consisting of a single product, one supplier and multiple retailers. Demand at the retailers is random, but stationary. Each retailer places her orders to the supplier according to the well known (Q,R) policy. We assume that the supplier has on-line information about the demand as well as inventory activities of the product at each retailer and em...

This paper presents a two-echelon non-repairable spare parts inventory system that consists of one warehouse and m identical retailers and implements the reorder point, order quantity (R, Q) inventory policy. We formulate the policy decision problem in order to minimize the total annual inventory investment subject to average annual ordering frequency and expected number of backorder constraint...

This paper focuses on the development of simulation-based environment for multi-echelon cyclic planning and optimisation in the product maturity phase. It is based on integration of analytical and simulation techniques. Analytical techniques are used to obtain initial planning decisions under conditions of stochastic demand and lead time, whereas simulation techniques extend these conditions to...

The inventory management of multi-echelon repairable items systems is a major problem as these items are relatively expensive and slow-moving, so, inventory management can be a real problem due to mathematical complexities. In this work, a study was performed in a complex high-value products manufacturer, whose repairable items are both expensive and critical. Data of parts’ failure, storage an...

We present a two-echelon dual-channel inventory model in which stocks are kept in both a manufacturer warehouse (upper echelon) and a retail store (lower echelon), and the product is available in two supply channels: a traditional retail store and an Internet-enabled direct channel. The system receives stochastic demand from two customer segments: those who prefer the traditional retail store a...