In this paper, we consider a multi-item continuous review inventory system with compound Poisson demands under a general cost structure. Excess demand is backlogged and a fixed delivery lag is assumed. A new algorithm for computing an exact optimal policy is derived based upon the policy...

This paper is an in-depth treatment of an inventory control problem with perishable items. We focus on two prototypes of perishability for items that have a common shelflife and that arrive in batches with zero lead time: (i) sudden deaths due to disasters (e.g., spoilage because of extreme...

To construct an accurate probability density function for lead time demand in inventory management models, a mixture of polynomials (MOPs) distributions is estimated using B-spline functions from empirical data on demand per unit time. This is accomplished by summarizing the empirical...

This paper presents an approximation model for optimizing reorder points in one-warehouse N-retailer inventory systems subject to highly variable lumpy demand. The motivation for this work stems from close cooperation with a supply chain management software company, Syncron International, and...

Credit options and side payments are two methods suggested for achieving coordination in a two-echelon supply chain. We examine the credit option coordination mechanism introduced by Chaharsooghi and Heydari [Chaharsooghi, S., & Heydari, J. (2010). Supply chain coordination for the joint...

This paper reconsiders the lost-sales inventory system studied by Hill (2007). The commonly assumed policy to apply to the system is a pure base-stock policy (PBSP) for which the best base stock is easily found. Hill shows that his simple delay policy (SDP) and full delay policy (FDP) perform...

We consider a continuous-review inventory model for a firm that faces deterministic demand but whose supplier experiences random supply disruptions. The supplier experiences “wet” and “dry” (operational and disrupted) periods whose durations are exponentially distributed. The firm...

We consider a perishable inventory system with bonus service for certain customers. The maximum inventory level is S. The ordering policy is (0, S) policy and the lead time is zero. The life time of each items is assumed to be exponential. Arrivals of customers follow a Poisson process with...

This paper is an in-depth treatment of an inventory control problem with perishable items. We focus on two prototypes of perishability for items that have a common shelflife and that arrive in batches with zero lead time: (i) sudden deaths due to disasters (e.g., spoilage because of extreme...

This paper studies optimal monetary and fiscal policies in an economy à la Lucas and Stokey (1983) and Lagos and Wright (2005) with multiple cash and credit goods. We show that optimal policies are in general time inconsistent due to insufficient number of instruments to influence future...