We develop a continuous time Newsvendor model to determine the optimal inventory level for commodities in an established financial market. Unlike most models in literature, the newsvendor is not necessarily risk-neutral and chooses the order quantity that maximises the expected utility of the...

In this study, we are primarily motivated by the research problem of recognizing heterogeneous customer behavior towards waiting for order fulfillment under the 'threshold rationing policy' (also known as the 'critical level policy'), and aim to find its effect on system stock levels and...

Business environments change over time. They are cyclic, show seasonality or just evolve over time. This is certainly true for customer demand. As a result, stationary demand distributions are crude approximations of true customer behavior at best. Yet, most classical stochastic inventory models...

This paper investigates the dynamic inventory model for the case when production in a period is restricted to a finite set of specified values. The model allows the production rate to be any value in the set (0, P, 2P, ..., mP), where m is a non-negative integer. It is assumed that the setup...

We consider the problem of managing inventory and production capacity in a start-up manufacturing firm with the objective of maximising the probability of the firm surviving as well as the more common objective of maximising profit. Using Markov decision process models, we characterise and...

In many real-life contexts, inventory levels are only incompletely observed due to nonobservation of demand, discrepancies in transmitting sales data, transaction errors, spoilage, misplacement, or theft of inventory. We study a periodic review inventory system where the demand is not observed...

Information delays exist in an inventory system when it takes time to collect, process, validate, and transmit inventory/demand data. A general framework is developed in this paper to describe information flows in an inventory system with information delays. We characterize the suffcient...

Information delays exist when the most recent inventory information available to the Inventory Manager (IM) is dated. In other words, the IM observes only the inventory level that belongs to an earlier period. Such situations are not uncommon, and they arise when it takes a while to process the...

This paper analyzes the role of storage for economies facing the risk of a gas supply disruption. We characterize the optimal/competitive transitory dynamics (accumulation, drainage and target stock). We partially relax the irreversibility hypothesis, by extending the model in two directions:...

Agents attempt to maximize expected profits earned by selling multiple units of a perishable product where their revenue streams are affected by the prices they quote as well as the distribution of other prices quoted in the market by other agents. We propose a model which captures this...