Abstract: It has been suggested by many supply chain practitioners that in certain cases inventory can have a stimulating effect on the demand. In mathematical terms this amounts to the demand being a function of the inventory level alone. In this work we propose a logistic growth model for the inventory dependent demand rate and solve first the continuous time deterministic optimal control pro...

Copyright: © 2016 INFORMS Abstract. We propose and analyze robust optimization models of an inventory management problem, where cumulative purchase, inventory, and shortage costs over n periods are minimized for correlated nonidentically distributed demand. We assume that the means and covariance matrix of stochastic demand are known; the distributions are not needed. We derive closed-form orde...

T author considers a model of a decentralized distribution system consisting of n retailers selling an identical product. Retailers face a stochastic demand and must order their initial inventory before this demand is realized. After demand realization, retailers decide how much of their unsold inventory or unsatisfied demand they want to share with other retailers. This is followed by a transs...

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...

Within the competition in today’s business environment, the design of supply chains becomes more complex than before. This paper deals with the retailer’s location problem when customers choose their vendors, and inventory costs have been considered for retailers. In a competitive location problem, price and location of facilities affect demands of customers; consequently, simultaneous optimiza...

In this research, an integrated inventory problem is formulated for a single-vendor multiple-retailer supply chain that works according to the vendor managed inventory policy. The model is derived based on the economic order quantity in which shortages with penalty costs at the retailers` level is permitted. As predicting customer demand is the most important problem in inventory systems and th...

Many extension of the newsboy problem have been solved in the literature. One of those extensions solves a newsboy problem with stochastic initial inventory, earlier extensions have focused on quantity discounts offered by suppliers. An important practical extension would address a combination of the two pervious extensions. In this paper we consider a newsboy problem in which the suppliers off...

This article is concerned with the (r, q) inventory model, where demand accumulates continuously, but the demand rate at each instant is determined by an underlying stochastic process. The primary result is the demonstration of a certain insensitivity property, which characterizes the limiting behavior of the model. This property drastically simplifies the computation of performance measures fo...

In the inventory model, people usually assume that the inter-demand times are independent and identically distributed, but that may not be true in reality. This limitation motivated us to seek greater understanding of an important class of inventory models with dependent demand. In this paper we analyze an ( ) S s, continuous review perishable inventory system with a Markovian renewal demand pr...

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...