This paper studies the effect of government deficits on equilibrium real exchange rates and stock prices. The theoretical part modifies a two-country cash-in-advance model like used in Lucas(1982) and Sargent(1987) in order to accommodate an exchange rate market and a government that pursues fiscal and monetary policy targets. The implied result is that unanticipated shocks in government defici...

We consider a stochastic inventory control problem with Markovian capacity and the option of order rejection. We show its optimal policy to be the combination of a capacity-dependent modified base-stock production policy and a capacity-dependent critical-point order acceptance policy. When capacity is stochastically monotone, we show that the policy parameters change over the current capacity l...

This paper is devoted to investigating inventory control problems under nonstationary and uncertain demand. A belief-rule-based inventory control (BRB-IC) method is developed, which can be applied in situations where demand and demand-forecast-error (DFE) do not follow certain stochastic distribution and forecasting demand is given in single-point or interval styles. The method can assist decis...

A customer order to a multi-item inventory system typically consists of several different items in different amounts. The probability of satisfying an arbitrary demand within a prespecified time window, termed the order fill rate, is an important measure of customer satisfaction in industry. This measure, however, has received little attention in the inventory literature, partly because its eva...

We propose a general methodology based on robust optimization to address the problem of optimally controlling a supply chain subject to stochastic demand in discrete time. This problem has been studied in the past using dynamic programming, which suffers from dimensionality problems and assumes full knowledge of the demand distribution. The proposed approach takes into account the uncertainty o...

A simulation based-decision support system for multi-product inventory control management is developed. The system permits management to obtain an inventory system-wide view of the effect of changes in decision variables on the performance measures of a furniture manufacturing firm. The simulation model considers the effect of variations in demand, reorder point, stock-control level, time betwe...

The bullwhip effect describes the tendency for the variance of orders in supply chains to increase as one moves upstream from consumer demand. Previous research attributes this phenomenon to both operational and behavioral causes. Operational causes are features of the institutional setting that lead rational agents to amplify changes in demand, while behavioral causes arise from suboptimal dec...

W e analyze a model that integrates demand shaping via dynamic pricing and risk mitigation via supply diversification. The firm under consideration replenishes a certain product from a set of capacitated suppliers for a pricedependent demand in each period. Under deterministic capacities, we derive a multilevel base stock list price policy and establish the optimality of cost-based supplier sel...

this paper presents a discrete-time single-server finite buffer n threshold policy queue with renewal input and discretemarkovian service process. the server terminates service whenever the system becomes empty, and recommencesservice as soon as the number of waiting customers in the queue is n. we obtain the system-length distributionsat pre-arrival and arbitrary epochs using the supplementary...