Supply chain management (SCM) addresses the management of materials and information across the entire chain from suppliers to producers, distributors, retailers, and customer. The theory of supply chain management suggests that lead time reduction is a pioneer to the use of market mediation to reduce transaction uncertainty in the chain, which can be conceptualized as the primary goal of supply...

Firms need to deal with not only risks from stochastic demand but also risks from supply side. The supply side risk may be due to parts/service outsourcing, third party logistics, or random yield in production processes. In this paper, we study how firms sequentially make price and quantity decisions under these two risks. The first question we try to answer is how these two risks affect the de...

In this paper we consider a single item, discrete time, lot sizing situation where demand is random and its parameters (e.g., mean and standard deviation) can change with time. For the appealing criterion of minimizing expected total relevant costs per unit time until the moment of the next replenishment we develop two heuristic ways of selecting an appropriate augmentation quantity beyond the ...

We study a periodic-review inventory model where, in addition to the procurement quantity, price is also a decision variable. We develop a model where demand in each period is a random variable having a priceand, possibly, period-dependent probability distribution, with the expected demand decreasing in price. The model includes price limits and "xed ordering costs in addition to unit procureme...

In this era of globalization and constant innovation, the life cycles of products are diminishing, which tends to cause dynamic behaviour in the system, and because of this, there is a constant introduction of new products in the market. Therefore, while developing inventory models for new products, it becomes necessary to consider dynamic parameters associated with the demand function and resp...

Email: [email protected] Abstract: Many researchers have assumed one stage trade credit financing. In this study, we considered two levels of trade credit policy using Discounted Cash Flow (DCF) approach. Demand rate is considered to be stock-dependent for the first level (credit demand) and constant for second level (cash demand). Mathematical models are derived under two differen...

The classical risk-neutral newsvendor problem is to decide the order quantity to maximize the one period expected pro.t under a given demand distribution. In this paper we consider a risk-averse newsvendor with a stochastic price-dependent demand. We use the Conditional Value-at-Risk (CVaR), a risk measure commonly used in finance, as the decision criterion. The aim of our study is to investiga...

In this work, we consider a continuous-time inventory system where the demand process follows an inventory-dependent diffusion process. The ordering cost of each order depends on quantity and is given by general function, which not even necessarily continuous monotone. By applying lower bound approach together with comparison theorem, show global optimality (s,S) policy for ergodic control prob...