In a centrally managed system, inventory at a retailer can be transshipped to a stocked-out retailer to meet demand. As the inventory at the former retailer may be demanded by future customers of that retailer and transshipment time/cost is non-negligible, it can be more profitable to not transship in some situations. When unsatisfied demand is backordered, reassignment of inventory to a previo...

We consider the problem of choosing the holding cost in inventory models. Traditionally, the cost of holding inventory is assumed to increase linearly with a rate that is equal to a percentage of the product value. This since the capital cost is believed to make up the main part of the cost. However, recent research indicates that this is not necessarily the case. In the present work, we presen...

Inventory situations, introduced in Meca et al. (2004), study how a collective of firms can minimize its joint inventory cost by means of cooperation. Depending on the information revealed by the individual firms, they analyze two related cooperative TU games: inventory cost games and holding cost games, and focus on proportional division mechanisms to share the joint cost. It turns out that ho...

Article history: Received March 18, 2015 Accepted April 16 2015 Available online May 14 2015 In this paper, a deterministic inventory model with depletion rate dependent holding cost is developed. The demand rate is a power function of the on-hand inventory behind to a certain stock level, at which the demand rate becomes a constant. Shortages are allowed and partially backlogged with the funct...

aBstraCt In this document it is analyzed the importance of contracts for coordination between two companies in a supply chain. In the studied situation, one company, or supplier, supplies one product to the other company, who is a retailer. The companies are going to coordinate by two types of decisions: economic (concerning prices fixed on a contract), and physical exchange (concerning the inv...

Demand correlation among two interacting items is common in real-life markets. Sometimes demand of the first item would trigger additional demand toward the second item, but not vice versa. For items with decreasing demand in time, the longer is the selling period, the less the demand and the higher the inventory cost. This paper develops the related inventory model during which two deteriorati...

Abstract. The purpose of this paper is to solve a two point boundary value problem (TPBVP) using Multiple Shooting Method. A production model used is a finished good warehouse to store products which are manufactured but not immediately consumed. Once a product is made and put into inventory it incurs the holding costs of two kinds: physically storing and insuring, and the carrying charges of h...

We consider the periodic-review, single-location, single-product, production/inventory control problem under non stationary demand and service-level constraints. The product is perishable and has a fixed shelf life. Costs comprise fixed ordering costs and inventory holding costs. For this inventory system we discuss a number of control policies that may be adopted. For one of these policies, we...