The paper examines the extent to which the conditional volatility of stock market returns in a small, internationally integrated stock market are related to the conditional volatility of financial and business cycle variables. It employs a low frequency monthly dataset for Australia including stock market returns, interest rates, inflation, the money supply, industrial production and the curren...

We develop bounds and approximations for setting base-stock levels in production-inventory systems with limited production capacity. Our approximations become exact as inventories become critical, meaning either that the target service level is very high or the backorder penalty is very large. Our bounds apply even without this requirement. We consider both single-stage and multi-stage systems....

We investigate large-scale facility location models that consider the risk pooling effects of centralizing safety stocks when customer demands are correlated across customer locations. This problem has not been well studied, perhaps because the calculation of safety stock levels with correlated demands requires significant computational effort. The experimental evaluation of any proposed proced...

Manufacturing managers face increasing pressure to reduce inventories across the supply chain. However, in complex supply chains, it is not always obviouswhere to hold safety stock to minimize inventory costs and provide a high level of service to the final customer. In this paper we develop a framework for modeling strategic safety stock in a supply chain that is subject to demand or forecast ...

Inventory model under risk that demand is uncertain is recognized. In this paper, the fuzzy demand per day and fuzzy lead time on a cycle in fuzzy inventory control system are assumed to trapezoidal distribution, trapezoidal fuzzy number by decision maker. A fuzzy inventory model under manager’s preference for order quantity is presented first. This model is given by fuzzy total annual inventor...

Unit load devices (ULDs) are used to load air cargo and passengers’ checked baggage for wide-bodied aircraft operations. Since ULDs are reusable at the destination, airlines can invest in an appropriate fleet size for their requirements. The estimation of safety stock levels for every operating airport is a premeditated task because airlines must prepare enough devices for the outbound consignm...

This article examines the optimal stock-out risk for a component used by alternative modules mounted on several assembly lines. The studied context is a supply chain dedicated to the mass production of highly diversified products, which is common in the automotive industry. The material requirement planning (MRP) approach is adapted to monitor this chain; however, the distance between the produ...

This article examines the optimal stock-out risk for a component used by alternative modules mounted on several assembly lines. The studied context is a supply chain dedicated to the mass production of highly diversified products, which is common in the automotive industry. The material requirement planning (MRP) approach is adapted to monitor this chain; however, the distance between the produ...

Lot-sizing problems (LSPs) belong to the class of production planning problems in which the availability quantities of the production plan are always considered as a decision variable. This paper aims at developing a new mathematical model for the multi-level capacitated LSP with setup times, safety stock deficit, shortage, and different production manners. Since the proposed linear mixed integ...