We consider a manufacturer’s stochastic production/inventory problem under periodic review and present methods for safety stock determination to cope with uncertainties that are caused by stochastic demand and different types of yield randomness. Following well-proven inventory control...

In today’s retail business many companies have a complex distribution network with several national and regional distribution centers. This article studies an integrated facility location and inventory allocation problem for designing a distribution network with multiple distribution centers...

In the recent article, Darwish and Odah (2010) develop a scheme that allows for identical replenishment cycles for all the retailers, in the context of a single vendor supplying a group of retailers under VMI partnership. This paper proposes an alternative replenishment scheme allowing for...

The stochastic variability measures the degree of uncertainty for random demand and/or price in various operations problems. Its ordering property under mean-preserving transformation allows us to study the impact of demand/price uncertainty on the optimal decisions and the associated objective...

We review research on ship routing and scheduling and related problems during the new millennium and provide four basic models in this domain. The volume of research in this area about doubles every decade as does the number of research outlets. We have found over a hundred new refereed papers...

This paper proposes an easily implementable, scalable decomposition heuristic for determining near optimal base stocks in two-level general inventory systems. In this heuristic, the general system is decomposed into assembly systems—one for each end product. For these assembly systems, the...

In this paper we consider a single-item inventory system with lost sales and fixed order cost. We numerically illustrate the lack of a clear structure in optimal replenishment policies for such systems. However, policies with a simple structure are preferred in practical settings. Examples of...

We consider a random yield inventory system, where a company has access to real time information about the actual yield realizations. To contribute to a better understanding of the value of this information, we develop a mathematical model of the inventory system and derive structural...

The increase in cost of supplies and services is outpacing the increase in revenues at many hospitals. To address this cost increase hospitals are seeking more efficient ways to store and manage vast inventories of medical supplies. A parsimonious and efficient inventory system which we call...

We study a multiple period discount problem for products that undergo several price cuts over time. In the high-technology sector, electronic component suppliers are often able to offer pre-announced price cuts to buyers due to technological innovation that allows them to produce existing...