A wide class of single-product, dynamic inventory problems with convex cost functions and a finite horizon is investigated as a stochastic programming problem. When demands have finite discrete distribution functions, we show that the problem can be substantially reduced in size to a linear program with upper-bounded variables. Moreover,, we show that the reduced problem has a network represent...

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...

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...

Proper inventory management is vital to achieving sustainability within a supply chain and also related company’s cash flow through the funds represented by inventory. Therefore, it necessary balance excess insufficient However, this can be difficult achieve in presence of stochastic demand because decisions must made an uncertain environment policy bears risks associated with each decision. Th...

We investigate the situation where a customer experiencing an inventory stockout at a retailer potentially leaves the firm’s market. In classical inventory theory, a unit stockout penalty cost has been used as a surrogate to mimic the economic effect of such a departure; in this study we explicitly represent this aspect of consumer behavior, incorporating the diminishing effect of the consumers...