In this paper, we use a Markov decision process (MDP) to model the joint inventory-promotion decision problem. The state variable of the MDP represents the demand state brought about by changing environmental factors as well as promotion decisions. The demand state in a period determines the...

We consider a production planning problem for a dynamic jobshop producing a number of products and subject to breakdown and repair of machines. The machine capacities are assumed to be finite state Markov chains. As the rates of change of the machine states approach infinity, an asymptotic...

This paper presents an asymptotic analysis of stochastic manufacturing systems consisting of machines in tandem subject to breakdown and repair and facing a constant demand, as the rates of change of the machine states approach infinity. This situation gives rise to a limiting problem in which...

The paper is concerned with the problem of optimal production planning in deterministic pull flow lines with multiple products. The objective is to specify the production policy that minimizes the total inventory and backlog costs overtime. Assuming constant product demands and non-decreasing...

We develop a new, unified approach to treating continuous-time stochastic inventory problems with both the average and discounted cost criteria. The approach involves the development of an adjusted discounted cycle cost formula, which has an appealing intuitive interpretation. We show for the...

We generalize the concept of K-convexity to an n-dimensional Euclidean space. The resulting concept of K-convexity is useful in addressing production and inventory problems where there are individual product setup costs and/or joint setup costs. We derive some basic properties of K-convex...

This paper attempts to illustrate the breadth of strategic approaches which an increasing number of corporate heads have chosen in switching from a re-active towards a pro-active attitude to the environment and the corporate challenges it raises. The five cases discussed - four Danish and one...

This paper deals with a practical application of an integrated approach to vehicle and crew scheduling, that we have developed previously. Computational results have shown that our approach can be applied to problems of practical size. However, application of the approach to the actual problems...

Acceptance sampling is often used to monitor the quality of raw materials and components when product testing is destructive, time-consuming, or expensive. In this paper we consider the effect of a buyer-imposed acceptance sampling policy on the optimal batch size and optimal quality level...

We analyze a supply chain consisting of a supplier and a retailer. The supplier's unit production cost, which characterizes his type, is only privately known to him. When trading with the retailer, the supplier demands a reservation profit that depends on his unit production cost. We model this...