This article analyzes a continuous time back-ordered inventory system with stochastic demand and stochastic delivery lags for placed orders. This problem in general has an infinite dimensional state space and is hence intractable. We first obtain the set of minimal conditions for reducing such a...

This paper presents and applies a stage-of-fabrication inventory model to the UK manufacturing sector. The model emphasises the interaction between input (raw materials and work-in-process) and output (finished goods) inventories. This interaction is an important empirical regularity and proves...

In this paper we present an approximation method to compute the reorder point s in a (R; s; Q) inventory model with a service level restriction, where demand is modeled as a compound Bernoulli process; that is, with a xed probability there is positive demand during a time unit, otherwise demand...

We review and interpret recent work on inventories, emphasizing empirical and business cycle aspects. We begin by documenting two empirical regularities about inventories. The first is the well-known one that inventories move procyclically. The second is that inventory movements are quite...

Motivated by the contrasting strategic choices made by two divisions of 7-Eleven regarding the risk ownership of excess inventory, our research aims to understand the drivers of the choice between consignment and retail ownership of inventory and to develop rules of thumb for determining what...

Previous studies show that firms with low inventory growth outperform firms with high inventory growth in the cross-section of publicly traded firms. In addition, inventory investment is volatile and procyclical, and inventory-to-sales is persistent and countercyclical. We embed an inventory...

There is a broad consensus that mankind must reduce carbon emissions to mitigate global warming. It is generally accepted that carbon emission trading is one of the most effective market-based mechanisms to curb the amount of carbon emissions. This paper investigates how firms manage carbon...

Motivated by the need of small and medium-sized hospitals to improve their platelet inventory management, we develop a finite-horizon dynamic programming model to optimize inventory control for perishable product (e.g., platelet) with 3-period shelf-life. In addition to identifying the best...

In this article, we study the impact of implementing corporate social responsible (CSR) practices on firms' inventory policy. We propose that there is an inverted U-shaped relationship between firms' CSR and their inventory levels. Two elements explain such a proposal. First, stakeholders have...