In this paper, we consider a single-stage manufacturing system with one machine, which makes a single product to stock to satisfy random demand. Customers inter-arrival times and production times are all exponential random variables. In order to represent customer impatience behavior caused by backlog, we employ a balking function, which is an arbitrary non-decreasing function of the backlogged...

This paper examines an integrated decision-making process regarding pricing for uncertain demand and sourcing from uncertain supply, which are often studied separately in the literature. Our analysis of the integrated system suggests that the base stock list price policy fails to achieve optimality even under deterministic demand. Instead, the optimal policy is characterized by two critical val...

We consider a periodic-review inventory system in which multiple non-identical retailers replenish from a warehouse, which further replenishes from an outside ample source. Each facility faces Poisson customer demand and replenishes according to a base-stock policy in a fixed time interval. There are fixed costs incurred for placing an order. The warehouse fills the retailers’ orders in the sam...

We study a joint inventory and pricing problem in a single-stage system with a positive lead time. We consider both additive and multiplicative demand forms. This problem is, in general, intractable due to its computational complexity. We develop a simple heuristic that resolves this issue. The heuristic involves a myopic pricing policy that generates each period’s price as a function of the in...

We consider a stock point for expensive, low-usage items that is operated by multiple decision makers. Each faces a Poisson demand process, and the joint stock point is controlled by a continuous-review base stock policy with full backordering. We consider penalty costs for backorders and holding costs for stock on hand. For this model, we derive structural properties of the resulting cost func...

I this paper, we study a firm that faces demand from two sources: demand for new items and demand to replace failed items under warranty. We model this setting as a multiperiod single-product inventory problem where the demands for new items in different periods are independent and the demands for replacing failed items depend on the number and ages of the items under warranty. We consider back...

We show that a modified base-stock policy is optimal for multiproduct, infinite-horizon production-inventory systems, where demand for the products is random and the products share a finite resource every period. We characterize the optimal policy for the case of homogeneous products. Because of the difficulty in computing the optimal base-stock levels for the heterogeneous case, we propose a h...

With the trend of globalization, supply chains are increasingly extended and uncertainties associated with material flow along the supply chain have become a major challenge in the planning process. In this study, we examine the effect of supply uncertainty on dynamically managing a two-stage supply chain under both centralized and decentralized controls. Specifically, the downstream faces dema...

T paper considers a multicomponent, multiproduct periodic-review assemble-to-order (ATO) system that uses an independent base-stock policy for inventory replenishment. Product demands in each period are integer-valued correlated random variables, with each product being assembled from multiple units of a subset of components. The system quotes a prespecified response time window for each produc...