In this paper we first show that the gains achievable by integrating pricing and inventory control are usually small for classical demand functions. We then introduce reference price models and demonstrate that for this class of demand functions the benefits of integration with inventory control...

The paper considers a production/distribution system that involves one vendor and multiple buyers. The buyers belong to an entity that is operationally more cost efficient than the vendor. We study two settings that have been widely applied in practice: vendor-managed inventory (VMI) and...

We introduce a class of models, called newsvendor networks, that generalizes the well-known newsvendor model along three dimensions. Newsvendor networks model the flow of multiple products through multiple processing and storage points over multiple time periods. Such models provide a...

In this study, we extend the single-period newsvendor problem with stochastic demand into a multi-period and time-dependent one and find a solution for it. We analyze the multi-period newsvendor problem with stochastic demand in a Stackelberg framework where the wholesaler is the leader and the...

We consider the optimal production and inventory control of an assemble-to-order system with m components, one end-product, and n customer classes. A control policy specifies when to produce each component and, whenever an order is placed, whether or not to satisfy it from on-hand inventory. We...

Lead time is one of the major limits that affect planning at every stage of the supply chain system. In this paper, we study a continuous review inventory model. This paper investigates the ordering cost reductions are dependent on lead time. This study addressed two-echelon supply chain problem...

In this paper, we apply continuous review (S-1, S) policy for inventory control in a three-echelon supply chain (SC) including r identical retailers, a central warehouse with limited storage space, and two independent manufacturing plants which offer two kinds of product to the customer. The...