This paper studies the optimal design of an inventory system with “one-way substitution” , in which a high-quality (and hence, more expensive) item fulfills its own demand and simultaneously acts as backup safety stock for the (cheaper) low-quality item. Through the use of a discrete time...

In this work a two echelon merge supply chain is examined. Specifically, two non identical reliable suppliers feed a distribution centre with a shared buffer. The first echelon consists of the distribution centre and the shared buffer, the second echelon includes two non identical reliable...

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...

This paper considers a multi-period news-vendor problem with partially observed supply-capacity information which evolves as a Markovian Process. The supply capacity is fully observed by the buyer when the capacity is smaller than the buyer's ordering quantity. Otherwise, the buyer knows that...

We develop a general filtering framework for the problem of estimating the state of a system whose dynamics is governed by a discrete-time Markov process. We describe applications to inventory control systems with partial observations. We introduce conditional distributions and unnormalized...

This paper is concerned with a generalization of classical inventory models (with fixed ordering costs) that exhibit (s, S) policies. In our model, the distribution of demands in successive periods is dependent on a Markov chain. The model includes the case of cyclic or seasonal demand. The...

We provide a review of the types of equilibria typically found in operations management inventory papers and a discussion on when the commonly used stationary infinite-horizon (open-loop) equilibrium may be sufficient for study. We focus particularly on order-up-to and basestock equilibria in...