In this article, we define a hedging strategy in a setting typical for the commodity market. Firstly, we prove the existence of the locally risk-minimizing (LRM) hedging strategy for payment streams in this setting. Next, a three-step procedure is described to determine the LRM hedging strategy....

The coordination of joint material flows is a key element in supply chain management. Although analytical models for the coordination of materials are of great practical value, literature analyzing them remains scarce. This article contributes to this gap by studying a generic supply chain...

Despite the widespread adoption of enterprise resource planning (ERP) systems, it is known that these systems suffer from inherent shortcomings which undermine their decision support capabilities. The crux of the problem lies at the midterm planning level (i.e. sales and operations planning,...

Despite the widespread adoption of enterprise resource planning (ERP) systems, it is known that these systems suffer from inherent shortcomings which undermine their decision support capabilities. The crux of the problem lies at the midterm planning level (i.e. sales and operations planning,...

The classical Wardrop System Optimum assignment model assumes that the users will cooperate with each other in order to minimize the overall travel costs. The importance of the system optimum model lies on its well-recognized ability of producing solutions that correspond to the most efficient...

The topological network design of general service, finite waiting room, multi-server queueing networks is a complex optimization problem. Series, merge, and split topologies are examined using an approximation method to estimate the performance of these queueing networks and an iterative search...

The optimal design of real-life systems modeled as finite queueing networks is a difficult stochastic optimization problem. Besides being non-linear and including integer variables, different objectives often conflict with each other. For example, one conflicting pair of objectives includes...

By embedding RFID tags onto their products, both manufacturers and retailers try to control for shrinkage (e.g. due to theft). Current inventory control systems do not take into account the disappearing inventory due to this shrinkage. As a response, corrective actions are made by performing...