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, and slow) and demand forecast updates. At the beginning of each period, the inventory level and demand information are …
Persistent link: https://www.econbiz.de/10014047631
This paper revisits the classical papers of Iglehart (Ref. 1) and Veinott and Wagner (Ref. 2) devoted to stochastic inventory problems with the criterion of long-run average cost minimization. We indicate some of the assumptions that are used implicitly without verification in their stationary...
Persistent link: https://www.econbiz.de/10014047794
acquisition, and forwards the orders to the supplier. The retailer usually has better customer demand information, and may send an … over-estimated demand forecast to maximize her own interest, which may result in overstock for the supplier. On the other …-penalty contracts that can provide greater certainty of demand as well as greater certainty of supply. We focus our study in the …
Persistent link: https://www.econbiz.de/10014047855
proposed method outperforms the Wagner-Whitin algorithm and the Silver-Meal heuristic, under several demand patterns, within a … knowledge about future demand as the ending inventory valuation method. Our results indicate that the superior performance … future demand is available, whereas the traditional methods do not use any information about demand beyond the short model …
Persistent link: https://www.econbiz.de/10014033650
Inventory control is among the most important topics in operations research because of large investments in inventory and their effect on the profitability of the firms. A systematic analysis of inventory problems began with the development of the classical EOQ formula of Ford W. Harris in 1913,...
Persistent link: https://www.econbiz.de/10014037303
A supplier provides several lead-time options to its customers in a periodic review inventory system. The replenishment lead time is a multiple of the inventory review cycle. Customers are classified into two groups: short lead-time customers requiring the product immediately and long lead-time...
Persistent link: https://www.econbiz.de/10014210616
We study a two-stage purchase contract with a demand forecast update. The purchase contract provides the buyer an … opportunity to adjust an initial commitment based on an updated demand forecast obtained at a later stage. An adjustment, if any … of demand distributions. We also discuss how these results can be applied to gain managerial insights that help in making …
Persistent link: https://www.econbiz.de/10012837583
firm over a finite horizon. We develop a novel demand model that transfers the discrete bundling decision and the … item complementarity, cost structure, inventory status, demand uncertainty, and supply responsiveness …
Persistent link: https://www.econbiz.de/10012920629
beginning of a selling period before demand is realized. Unsatisfied demand is lost and excess inventory has to be salvaged. The … standard approach is to assume stochastic demand to be composed of deterministic functions decreasing in price and a stochastic … error term. We present an empirical study which includes demand modelling as well as price and inventory optimization. Using …
Persistent link: https://www.econbiz.de/10014199887
We study a firm's optimal transshipment problem considering the impacts of setup costs for transshipment and demand … distribution shapes. We assume that the demand follows a three-point distribution, which changes from a degenerate distribution, to … a unimodal distribution, and to a bimodal distribution as the demand shape parameter increases. We find that as the …
Persistent link: https://www.econbiz.de/10012838121