Considering the competition in today’s business environment, tactical planning of a supply chain becomes more complex than before. In many multi-product inventory systems, substitution flexibility can improve profits. This paper aims to prepare a comprehensive substitution inventory model,...

In many inventory management systems, some kind of substitution flexibility exists, meaning that a substitute or more flexible item can be used (at an additional cost) when the preferred product stocks out. Through the use of substitution flexibility, we can take advantage of the risk pooling...

In many inventory management systems, some kind of substitution flexibility exists, meaning that a substitute or more flexible item can be used (at an additional cost) when the preferred product stocks out. Through the use of substitution flexibility, we can take advantage of the risk pooling...

To motivate buyers to increase their order quantity, suppliers often rely on a well-established and widely used approach--they offer quantity discounts. This practice is in large part driven to obtain improved economies in transportation through higher truckload utilization. Recently,...

Retailers must constantly strive for excellence in operations; extremely narrow profit margins leave little room for waste and inefficiency. This article reports a retailer's challenge to balance transportation, shelf space, and inventory costs. A retailer sells multiple products with stochastic...

The decentralized supply chain management scheme of Lee and Whang (1999) can be viewed as operationalizing the decentralized management scheme implicit in Clark and Scarf (1960). This paper proposes the use of what are called responsibility tokens (RTs) to further facilitate that...

We consider a single item assembled from two components. One of the components has a long lead time, high holding cost and short review period as compared to the other one. We assume that net stocks are reviewed periodically, customer demand is stochastic and unsatisfied demand is backordered....