This paper presents a new stage-of-fabrication inventory model with ordering usage and stocking of input materials that distinguishes between gross production and value added It extends the traditional linear-quadratic model of output (finished goods) inventories by adding joint determination of...

The paper deals with the analysis of a special dynamic production and inventory model. In this model logical restrictions to fulfill an accepted constant minimal level of the production lot size are incorporated, instead of keeping setup cost in the objective function, as it is common in many...

The relationship between inventory investment and the real interest rate has been difficult to assess empirically. Recent work has proposed a linear-quadratic inventory model with time-varying discount factor to identify the effects of real interest rate on inventory investment. The authors show...

In this paper we analyse the effect of satisfying in a different way customers with an order larger than a prespecified cutoff transaction size, in a simple newsboy setting.For compound Poisson demand with discrete order sizes, we show how to determine the expected costs and the optimal cutoff...

In this paper an inventory model with several demand classes, prioritised according to importance, is analysed. We consider a lot-for-lot or (S-1,S) inventory model with lost sales.For each demand class there is a critical stock level at and below which demand from that class is not satisfied...

This article studies specific aspects of the joint replenishment problem in a realsupply chain setting. Particularly we analyze the effect on inventory performance of havingminimum order quantities for the different products in the joint order, given a complextransportation cost structure. The...

The most recent optimization algorithm for (s, S) order policies with continuous demand was developed byFedergruen and Zipkin (1985). This was also the first efficient algorithm, which uses policy iteration instead ofdiscretization. Zheng and Federgruen (1991) developed an even more efficient...

This paper extends a fundamental result about single-item inventory systems. This approachallows more general performance measures, demand processes and order policies, and leads toeasier analysis and implementation, than prior research. We obtain closed form expressions forthe Laplace...

We modify the classic single-period inventory management problem by assuming that the newsvendor is expectation-based loss averse according to Köszegi and Rabin (2006, 2007). Expectation-based loss aversion leads to an endogenous psychological cost of leftovers as well as stockouts. If there...

This paper studies inventory constraints in a machine scheduling environment. Jobs can add and remove items of different types to the inventory and from the inventory, respectively. Jobs removing items cannot be processed if the required amount of items is not available. We first have a look at...