This paper considers a three-tier distribution network with one manufacturer, multiple warehouses and multiple retailers. The demand at the retailers is constant and shortages are not allowed. The problem is to determine location of the plant, number and location of warehouses, allocation of...

The basic financial purpose of a firm is to maximize its value. An inventory management system should also contribute to the realization of this basic aim. Many current asset management models found in financial management literature were constructed with the assumption of book profit...

Maximization of wealth of its owners is the basic financial aim in management of enterprise. Inventory management must contribute to realization of this aim. The paper presents value-based inventory management model (EOQ) modification

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...

An approximation for the fill rate, i.e. the percentage of demand being delivered from inventory on hand immediately, is derived for items in a periodic review inventory control system with lost sales. We assume demand is stochastic and discrete, lead times are positive and replenishments are...

In the past thirty years the full turnover-based storage policy as described by Hausman et al. (1976, Management Science 22(6)) has been widely claimed to outperform the commonly used ABC class-based storage policy, in terms of the resulting average storage and retrieval machine travel time. In...

Many of the challenges in spare parts logistics emerge due to the combination of large service networks, and sporadic/slow-moving demand. Customer heterogeneity and stringent service deadlines entail further challenges. Meanwhile, high revenues rates in service operations motivate companies to...

We study the impact of limited inventory on optimal salesforce compensation contracts. We use the framework of Oyer (2000), characterized by limited liability and rent sharing with the agent. A commonly invoked assumption in the inventory management literature is that the demand distribution...

We study motives for and impacts of management discretion in inventory valuation. The semiconductor industry, with continual output price declines and rapid product obsolescence, provides an ideal setting to examine managers' inventory write-down and production decisions. In this context, we...

This paper examines how strategic customer behavior impacts e-tailers' inventory storage location, pricing and inventory level decisions. We build a stylized model where an e-tailer either has only a central warehouse, or add a local warehouse and thus has both warehouses for inventory storage....