We present a periodic review inventory model with multiple delivery modes and demand forecast updates. We generalize the notion of the base-stock policy for inventory system with multiple delivery modes. While base-stock policies are optimal for one or two consecutive delivery modes, it is not so otherwise. For multiple consecutive delivery modes, we show that only the fastest two modes have op...

We study a single product inventory system with nonnegative setup cost in which the demand is a continuous random variable but orders are restricted to be integer valued. Optimal policies, when there are no setup costs, have a nice form. However, we show that, when the setup costs are nonzero, optimal policies may have a very counterintuitive form without any particular structure. We obtain a b...

This paper is concerned with a periodic review inventory system with three consecutive delivery modes (fast, medium, and slow) and demand forecast updates. At the beginning of each period, the inventory level and demand information are updated, and decisions on how much to order using each of the three delivery modes are made. Both finite and infinite horizon problems are treated. Objectives co...

A supplier has a periodic review inventory system that provides several lead-time options to its customers. The inventory replenishment lead time is a multiple of the inventory review cycle. Customers are classified into two groups: short lead-time customers requiring the product immediately and long lead-time customers who allow the supplier the flexibility to deliver immediately or in the nex...

Manufacturers make production decisions and carry inventory to satisfy uncertain demand. When holding and shortage costs are high, carrying inventory could be even more expensive for a capacitated production system. Recent developments in information technology and sales strategies enabled firms to acquire, collect, or induce advance demand information. We address a periodic-review, stochastic,...

A result in the Bayesian inventory management literature is: If lost sales are not observed, the Bayesian optimal inventory level is larger than the myopic inventory level (one should “stock more” to learn about the demand distribution). This result has been proven in other studies under the assumption that inventory is perishable, so the myopic inventory level is equal to the Bayesian optimal ...

Unlike commonly used methods, in this paper, we have introduced a new approach for designing fuzzy controllers. In this approach, we have simultaneously optimized both objective functions of a supply chain over a two-dimensional space. Then, we have obtained a spectrum of optimized points, each of which represents a set of optimal parameters which can be chosen by the manager ...