We develop an integrated vendor-buyer model for a two-stage supply chain. The vendor manufactures the product and delivers it in a number of equal-sized batches to the buyer. The items delivered are presented to the end customers in a display area. Demand is assumed to be positively dependent on...

Emergency orders have shorter lead times but incur extra costs compared to normal orders. We present a discrete-time Markov decision model where normal orders are issued according to a reorder point policy with a fixed order quantity, whereas emergency orders are controlled by a state-dependent...

We study the continuous-review (r; q) system in which un_lled demands are treated as lost sales. The reorder point r is allowed to be equal to or larger than the order quantity q. Hence, we do not restrict our attention to the well-known case with at most one replenishment order outstanding, but...

We describe the development of a framework to compute the optimal inventory policy for <p> a large spare-parts’ distribution centre operation in the RA division of the Danfoss Group <p> in Denmark. The RA division distributes spare parts worldwide for cooling and A/C <p> systems. The warehouse...</p></p></p>

We show that well-known textbook formulae for determining the optimal base stock of the inventory system with continuous review and constant lead time can easily be extended to the case with periodic review and stochastic, sequential lead times. The provided performance measures and conditions...

The order fill rate is less commonly used than the volume fill rate (most often just denoted fill rate) as a performance measure for inventory control systems. However, in settings where the focus is on filling customer orders rather than total quantities, the order fill rate should be the...