We consider the multiproduct and multicomponent assemble-to-order (ATO) systems where the replenishment lead times of the components are stochastic, sequential, and independent of the system state. The component inventories are either controlled by the continuous-time base-stock policies, namely, a base-stock ATO system, or by the continuous-time batchordering policies, namely, a batch-ordering...

A supply chain can be defined as an integrated business process wherein a number of various business entities (i.e., suppliers, manufacturers, distributors, and retailers) work together. Supply chain configuration is concerned with determining supply, production and stock levels in raw materials, subassemblies at different levels of the given bills of material (BOM). End products and informatio...

We study a multi-item stochastic inventory system in which customers may order different but possibly overlapping subsets of items, such as a multiproduct assemble-to-order system. The goal is to determine the right base-stock level for each item and to identify the key driving factors. We formulate a cost-minimization model with order-based backorder costs and compare it with the standard sing...

In this paper we consider a 1-warehouse, N-retailer inventory system where demand occurs at all locations. We introduce an inventory model which allows us to set different service levels for retailers and direct customer demand at the warehouse. For each retailer a critical level is defined, such that a retailer replenishment order is delivered from warehouse stock if and only if the stock leve...

In this paper we consider the problem of a firm that faces a stochastic (Poisson) demand and must replenish from a market in which prices fluctuate, such as a commodity market. We describe the price evolution as a continuous stochastic process and we focus on commonly used processes suggested by the financial literature, such as the geometric Brownian motion and the Ornstein-Uhlenbeck process. ...

The paper addresses the issue of stability for re-entrant flow lines, producing multiple products, with capacitated machines, random demand and random yield. The policies of interest are multi-echelon base stock policies, combined with a set of static and dynamic management rules of the available capacity. We introduce three classes of capacitated echelon base stock policies: Π0, the pure multi...

Using a novel stochastic programming (SP) formulation, we develop an algorithm for inventory control in industrial sized Assemble-To-Order (ATO) systems that has unparalleled efficiency and scalability. Applying our algorithm on several numerical examples, we generate new insights with respect to the control and optimization of these systems. We consider a continuous time model, seeking base-st...

this paper aims to evaluate inventory cost of a two-echelon serial supply chain system under vendor managed inventory program with stochastic demand, and examine the effect of environmental factors on the cost of overall system. for this purpose, we consider a two-echelon serial supply chain with a manufacturer and a retailer. under vendor managed inventory program, the decision on inventory le...

This paper is motivated by inventory problems arising in supply chains characterized by continuous replenishment programs based on information exchanged (reviewed) only intermittently between a manufacturing system (supplier) and a customer (retailer). When the replenishment is once-per-period, rather than at any point of time, a well-known result is the optimality of the so-called myopic base-...