We consider the joint pricing and inventory control problem for a single product whose demand distribution in each period is determined both by whether or not a sale price is offered in the current period, and the number of periods since the last time the sale price was offered. We show that optimal inventory ordering policy is a state dependent base stock policy; however, the optimal pricing p...

We consider a multi-item two-echelon inventory system in which the central warehouse operates under a (Q,R) policy, and the local warehouses implement basestock policy. An exact solution procedure is proposed to find the inventory control policy parameters that minimize the system-wide inventory holding and fixed ordering cost subject to an aggregate mean response time constraint at each facility.

We study a single-period inventory control problem with two independent suppliers. With the first supplier, the buyer incurs a high variable cost but negligible fixed cost; with the second supplier, the buyer incurs a lower variable cost but a positive fixed cost. At the same time, the ordering quantity is limited. We develop the optimal inventory control policy when the holding and shortage co...

We consider a supplier who faces stationary demand and uses dynamically updated forecast information to place orders to an upstream distributor. The order size is restricted and each order entails a high fixed cost. We characterize the form of the optimal policy in the special case where the fixed cost of ordering is high enough to warrant all-or-nothing ordering in each period.

Exogenous demand assumptions provide accurate results at the retail level. As we go in the supply chain, the orders of the buyers get more complicated. The orders are influenced by both the decisions of the supplier and the costs of the buyer’s operations. Therefore, it is critical for a supplier to understand the ordering behavior of a buyer in order to manage her operations. We consider a two...

Vector autoregressive models are often used in Macroeconomics to draw conclusions about the effects of policy innovations. However, those results depend on the researcher’s priors about the particular ordering of the variables. As an alternative, this paper presents a very simple rule based on the maximum entropy principle that can be used to find the “most likely” ordering. The proposal is ill...

— This paper considers optimum ordering policies minimizing the expected cost per unit time in the steady-state. It is assumed that a lead time for the spare is constant and order costs depend on time. It is shown in theorem that there exists afinite and unique optimum ordering policy under certain conditions.

In this paper, we discuss a paper of Chang and Teng [C.T. Chang, J.T. Teng, Retailer’s optimal ordering policy under supplier 4 credits, Mathematical Methods of Operations Research 60 (2004) 471–483], they established an inventory model for deteriorating 5 items when the supplier permits not only a cash discount but also a permissible delay. They also proved a closed-form solution 6 of the inve...

In this paper, a new fuzzy multi-criteria mathematical model for the selection of the best among a finite number of ordering policy of raw material in a supply chain is developed. The problem treated is a part of the purchasing plan of a company in an uncertain environment and it is very common in business practice. Optimization criteria selected describe the performance measures of ordering po...

This paper considers a multistage serial inventory system with Markov-modulated demand. Random demand arises at Stage 1, Stage 1 orders from Stage 2, etc., and Stage N orders from an outside supplier with unlimited stock. The demand distribution in each period is determined by the current state of an exogenous Markov chain. Excess demand is backlogged. Linear holding costs are incurred at every...