– P is the “true” or physical probability measure – Ω is the universe of possible outcomes. We use ω ∈ Ω to represent a generic outcome, typically a sample path(s) of a stochastic process(es). – the set F represents the set of possible events where an event is a subset of Ω. • There is also a filtration, {F}t≥0, that models the evolution of information through time. So for example, if it is kno...

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...

This study analyzes a stochastic lead time inventory model under the assumptions that (a) replenishment orders do not cross in time and (b) the lead time distribution for a given order is independent of the number and sizes of outstanding orders. The study extends the existing literature on the finitehorizon version of the model and yields an intuitively appealing dynamic program that is nearly...

We develop new algorithmic approaches to compute provably near-optimal policies for multi-period stochastic lot-sizing inventory models with positive lead times, general demand distributions and dynamic forecast updates. The policies that are developed have worst-case performance guarantees of 3 and typically perform very close to optimal in extensive computational experiments. The newly propos...

The deal for industrial companies is to satisfy their customers with the best quality, the most reliable lead times, and the lowest costs. One of the keys to achieve it is in the inventory control in the Supply Chain. Moreover, it is mandatory to possess necessary components in order to produce the requested products by the due date. But, as the components lead time is an unpredictable paramete...

Salal Humair Harvard School of Public Health, Boston, MA 02115, School of Science and Engineering, Lahore University of Management Sciences, Lahore, Pakistan, [email protected] John Ruark Logility, Inc., 8 New England Executive Park, Burlington, MA 01803, [email protected] Brian Tomlin Tuck School of Business at Dartmouth, 100 Tuck Hall, Hanover, NH 03755, [email protected]...

The integration of marketing and demand with logistics and inventories (supply side of companies) may cause multiple improvements; it can revolutionize the management of the revenue of rental companies, hotels, and airlines. In this paper, we develop a multi-objective pricing-inventory model for a retailer. Maximizing the retailer's profit and the service level are the objectives, and shortage ...

This paper considers two-level assembly systems whose lead times of components are stochastic with known discrete random distributions. In such a system, supply planning requires determination of release dates of components at level 2 in order to minimize expected holding cost and to maximize customer service. Hnaien et al. [Hnaien F, Delorme X, Dolgui A. Multi-objective optimization for invent...