In this paper, we develop an extension of the newsvendor model with initial inventory. In addition to the usual quantity ordered at the beginning of the horizon and the usual quantity salvaged at the end of the horizon, we introduce a new decision variable: a salvage opportunity at the beginning...

We develop a stochastic two-period production/inventory planning model, which combines the use of information updating process with the flexibility of different delivery lead-times ordering strategy. Several decision variables are used: two orders are placed at the beginning of the first and...

We propose a stochastic programming approach for quantitative analysis of supply contracts, involving flexibility, between a buyer and a supplier, in a supply chain framework. Specifically, we consider the case of multi-periodic contracts in the face of correlated demands. To design such...

The production control, via hedging point policies, of a single part type manufacturing system with stochastic capacity and demand is discussed. In the present paper, several feasible operational modes may correspond to equal hedging points. For such generalized hedging point policies, we...

A proposed single-product, stochastic, two-period inventory control model combines demand forecast updating with the flexibility of two supply sources. Demand is modeled by two independent, random variables over a two-period selling season. At the beginning of the first period, two quantities...

Author's abstract. Motivated by many applications such as typical blockbuster product launches, we address in this paper, an inventory/production rollover process between an old and a new product, with a random availability/admissibility date for the new product. The optimization problem...

In this paper, we consider a two-stage supply contract model for advanced reservation of capacity, with payback option at the beginning of the selling season. Between the two decision stages, external information is collected that serves to update the demand forecast and permits to adjust the...