Abstract We consider the optimal control of a production-inventory system with a single product where items are produced one unit at a time. Upon arrival, customer orders can be fulfilled from existing inventory, if there is any, backordered, or rejected. Although customers are willing to wait

order lead times are less than a threshold value, it is allowed to aggregate the orders over time when establishing the optimal production decision. This implies the optimality of an order base-stock policy. It shows also that in case of linear inventory cost, the positive effect of advance demand

of interest charges, the rate of interest earned, and the dete-rioration rate into the triangular fuzzy number. Subsequently, we discuss how to deter-mine the optimal ordering policy so that the total relevant inventory cost, in the fuzzy sense, is minimal. Furthermore, we show that Chang et al.’s [1] model

demand forecast, but it also involves a higher unit supply cost. To determine the optimal ordering policy, we use a computational procedure that entails solving capacitated multi-item newsboy problems embedded within a dynamic programming model. Various numerical examples illustrate the effects of demand

is performed with possible inspection errors. The objective of this paper is to determine the optimal number of shipments as well as the size of each shipment in order to minimize the joint annual cost incurred by both vendor and buyer. We develop a cost model for the supply chain system and propose a solution

We consider a single-item, periodic-review, serial, multi-echelon inventory system, with linear inventory holding and penalty costs. In order to facilitate shipment consolidation and capacity planning, we assume the system has implemented periodic batching: each stage is allowed to order at given

of product, the quantity received matches exactly the quantity ordered or there are no errors occurring during the data capture process. In fact, for a majority of investigations, it is implicitly supposed that the level of the available inventory shown by the information system corresponds exactly

incorporated in the paper over varying model parameters. Effect of two marketing strategies and market survey durations are examined. Conditions for marketing plan design are discussed and it is found that marketing plans, if designed carefully, highly affect the optimal parameters of a new product inventory

Abstract: This study investigates the effect of random scrap rate on multi-item Finite Production Rate (FPR) model with multi-shipment policy. The classic FPR model considers production planning for single product, a perfect condition during the production run and a continuous inventory issuing

relaxation, in order to obtain both a heuristic solution and a lower bound for the optimal costs. Underlying subproblems are solved by applying product-form solutions for closed queueing networks, an exact optimization procedure for a single-item spare parts inventory problem, and linear programming theory