Inventory or material balance control is an important part of process control. In the literature, many rules have been proposed to held in designing such systems, but their justification is often unclear. The main contribution of this paper is to proposed the more general selfconsistency rule for evaluating inventory control systems. Consistency means that the steadystate mass balances (total, ...

A two-echelon one-warehouse multi-retailer inventory system is considered. Everyday, each retailer faces a stochastic demand and must choose whether to replenish or not from the warehouse. Decisions are made locally with the objective of minimizing individual ordering, storage/shortage and fixed transportation costs. The last are shared among all retailers who choose to replenish, thus motivati...

This paper is concerned with the optimal control of a production inventory system with deteriorating items. It is assumed that the deterioration rate follows the two-parameter Weibull distribution. The continuous-review and periodic-review policies are investigated. In each case, optimality conditions are derived. Also, numerical illustrative examples are presented.

We consider the issue of modeling service level measures in stochastic decision making via chance constraints. More specifically we focus on service level measures in production/inventory control under stochastic demand and α service level constraints, which are constraints enforcing a prescribed non-stockout probability for the system. We introduce multiple ways of expressing these chance cons...

The present study was carried out to investigate Goyal’s model (1985) and Teng’s model (2002) using the algebraic method to determine the optimal cycle time under delay payments. This paper provides algebraic approach that must be considered as a pedagogical advantage for explaining the inventory concept to students that lack knowledge of derivatives. This algebraic approach could therefore be ...

An interesting class of production/inventory control problems considers a single product and a single stocking location, given a stochastic demand with a known non-stationary probability distribution. Under a widely-used control policy for this type of inventory system, the objective is to find the optimal number of replenishments, their timings and their respective order-up-to-levels that meet...

For large commercial airlines, efficiently setting and updating seat allocation targets for each passenger category on each multi-leg flight is an extremely difficult problem. This paper presents static and dynamic models of airline seat inventory control for multi-leg flights with multiple fare classes, which allow one to maximize an expected contribution to profit. The dynamic model uses the ...

Betanodavirus is one of the two genera making up the family Nodaviridae and is the etiological agent of viral nervous necrosis (VNN, also known as viral encephalopathy and retinopathy or VER). The virus infects a large range of host species in more than 50 species of marine and freshwater fish worldwide from different geographical areas and the known host range continues to expand as new specie...

A well-known method of inventory control is the reorder-point/order-quantity system, or (r, q) system, where an order of constant size q is placed whenever the inventory position (that is, stock on hand plus on order minus backorders) drops to a fixed reorder point r. Zipkin (1986) proves that, when stockouts are backordered, the average outstanding backorders, denoted by B(q, r), is a convex f...