In this paper, we develop an economic production quantity (EPQ) model under machine breakdown and two types of repair (corrective and preventive). also, study the simultaneous effect of holding safety stock and purchasing policy. In order to avoid shortages occurring as a result of the random repair time, in addition to keep safety stock, we suppose that the manufacturer could purchase some qua...

We study a stochastic lead-time problem motivated by real world global shipping data. Replenishment quantities are generated by the Order-Up-To policy which aims to achieve a strategic availability target. We show that unlike the constant lead-time case, minimum safety stocks do not always lead to minimum costs under stochastic lead-times.

Recent models with liquidity constraints and impatience emphasize that consumers use savings to buffer income fluctuations. When wealth is below an optimal target, consumers try to increase their buffer stock of wealth by saving more, while, if wealth is above target, they increase consumption. This important implication of the buffer stock model of saving has not been subject to direct empiric...

The goal of this study was to carry out singleand multi-aspect ABC analyses in spare parts warehouse. Two cases were considered within the investigations. First case concerned stock with the required safety stock, whereas in the second case, safety stock was neglected. Comparison of the results for both analyses was to show how the level of safety stock impacts on selection of more profitable a...

PROCUREMENT POLICY

In managing an inventory network, two approaches to the pooling of stock have been proposed. Reactive transshipments respond to shortages at a location by moving inventory from elsewhere within the network, while proactive stock redistribution seeks to minimize the chance of future stockouts. This paper is the first to propose an enhanced reactive approach in which individual transshipments are...

We consider a segment of a supply chain comprising an inventory system and a transportation system that cooperate in the fulfillment of stochastic customer orders. The inventory system is operated under a discrete time (s, q) policy with backorders. In a system of this kind accumulated backorders introduce lumpiness of transportation demand into the system. We study the connection between the s...