This paper improves upon the existing literature surrounding the production order quantity inventory model in which unit cost and daily production are assumed to be constant. By including economies of scale into the model, we examine its impact on production order quantity and total cost. The...

A new model formulation is developed for reducing the workload in pre-batching at a manufacturer of flavours and fragrances, by optimally assigning ingredients to different storage types, taking into account past usage of ingredients and several restrictions about volumes and number of storage...

An approximation for the fill rate, i.e. the percentage of demand being delivered from inventory on hand immediately, is derived for items in a periodic review inventory control system with lost sales. We assume demand is stochastic and discrete, lead times are positive and replenishments are...

A stochastic inventory routing problem (SIRP) is typically the combination of stochastic inventory control problems and NP-hard vehicle routing problems, for a depot to determine delivery volumes to its customers in each period, and vehicle routes to distribute the delivery volumes. This paper...

The basic financial purpose of a firm is to maximize its value. An inventory management system should also contribute to the realization of this basic aim. Many current asset management models found in financial management literature were constructed with the assumption of book profit...

Inventory control is among the most important topics in operations research because of large investments in inventory and their effect on the profitability of the firms. A systematic analysis of inventory problems began with the development of the classical EOQ formula of Ford W. Harris in 1913,...

In this paper we develop a combined inventory-transportation system. The general idea is to integrate a simple replenishment policy with a routing component to derive operationally consistent standard routes as a basis for milk run design. The most interesting feature of the approach is that we...

In this paper, we consider a continuous review inventory system of a slow moving item for which the demand rate drops to a lower level at a pre-determined time. Inventory system is controlled according to one-for-one replenishment policy with fixed lead time. Adaptation to the lower demand rate...

In the past thirty years the full turnover-based storage policy as described by Hausman et al. (1976, Management Science 22(6)) has been widely claimed to outperform the commonly used ABC class-based storage policy, in terms of the resulting average storage and retrieval machine travel time. In...