Many extension of the newsboy problem have been solved in the literature. One of those extensions solves a newsboy problem with stochastic initial inventory, earlier extensions have focused on quantity discounts offered by suppliers. An important practical extension would address a combination of the two pervious extensions. In this paper we consider a newsboy problem in which the suppliers off...

in any supply chain, distribution planning of products is of great importance to managers. with effective and flexible distribution planning, mangers can increase the efficiency of time, place, and delivery utility of whole supply chain. in this paper, inventory routing problem (irp) is applied to distribution planning of perishable products in a supply chain. the studied supply chain is compos...

We consider the problem of determining (for a short lifecycle) retail product initial and replenishment order quantities that minimize the cost of lost sales, back orders, and obsolete inventory. We model this problem as a two-stage stochastic dynamic program, propose a heuristic, establish conditions under which the heuristic finds an optimal solution, and report results of the application of ...

a new mathematical model for the optimal production isformulated for the inventory management system under time-varyingand stochastic inflation environment for deteriorating items. the timehorizon is finite and demand rate is dependent to the inflation. in thereal situation, some but not all customers will wait for backlogged itemsduring a shortage period, such as for fashionable commodities or...

generally ordering policies are done by two methods, including fix order quantity (foq) and fix order period (fop). these methods are static and either the quantity of ordering or the procedure of ordering is fixing in throughout time horizon. in real environments, demand is varying in any period and may be considered as uncertainty. when demand is variable in any period, the traditional and st...

in this study, we considered an inflationary inventory control model under non-deterministic conditions. we assumed the inflation rate as a normal distribution, with any arbitrary probability density function (pdf). the objective function was to minimize the total discount cost of the inventory system. we used two methods to solve this problem. one was the classic numerical approach which turne...

We consider a single-echelon, single-item inventory system where both demand and lead-time are stochastic. Continuous review policy is used to control the inventory system. The objective is to calculate the reorder point level under stochastic parameters. A case study is presented in Neonatal Intensive Care Unit. Keywords—Inventory control system, reorder point level, stochastic demand, stochas...

This paper formulates a stochastic inventory model for a single-period seasonal or fashion product inventory system consisting of multiple stocking echelons in series and retailers. By transforming model, an equivalent two-stage stochastic linear program model is developed to solve this stochastic inventory problem, which makes the inventory problem easier to analyze. The optimal placement poli...

A typical discrete-time sequential decision problem involves a system whose state is assumed to evolve either deterministically or probabilistically over time-periods that are often called stages. This evolution is affected by the decisions a planner makes at the beginning of each stage after observing the system state. The decision maker’s goal then is to optimize some measure of system perfor...