In many inventory control contexts, inventory levels are only partially (i.e., not fully) observed. This may be due to non-observation of demand, spoilage, misplacement, or theft of inventory. We study a periodic review inventory system where the unmet demand is backordered. When inventory level...

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...

We develop a general filtering framework for the problem of estimating the state of a system whose dynamics is governed by a discrete-time Markov process. We describe applications to inventory control systems with partial observations. We introduce conditional distributions and unnormalized...

This paper introduces recent developments in the analysis of inventory systems with partial observations. The states of these systems are typically conditional distributions, which evolve in infinite dimensional spaces over time. Our analysis involves introducing unnormalized probabilities to...

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...

The book is concerned with the problems of inventory and supply chain decision making with information updating over time. The models considered include inventory decisions with multiple sources and delivery modes, supply-contract design and evaluation, contracts with exercise price,...

Based on the conditional value at risk criterion (CVaR), this paper constructed the additional-ordering newsvendor model considering the degree of risk aversion, the lost sale penalty cost and the limit of additional ordering, gave the satisfying conditions of optimal ordering quantity, and...