We investigate optimality of myopic policies using the single-unit decomposition approach in inventory management. We derive, under certain conditions, closed-form replenishment decisions, which we call a base-probability policy. That is, the order associated with a given customer is placed if...

Product returns have become a significant feature of many manufacturing systems. Because products are returned under different operational conditions, they usually require different remanufacturing effort/costs. Motivated by a project with a major energy company that manages its inventory...

In this paper, we investigate the optimality of myopic inventory replenishment policies in a periodic-review single-echelon system, with nonstationary, correlated, stochastic demand and cost, and nonincreasing stochastic prices. Using the single-unit decomposition approach, we provide certain...

When inventory replenishments can arrive in a different sequence than the one in which they were placed, it is important to use the shortfall distribution to set the base-stock level. Because the exact shortfall distribution is quite difficult to compute, heuristics are commonly used in its...

We analyze a serial base-stock inventory model with Poisson demand and a fill-rate constraint. Our objective is to gain insights into the linkage between the stages to facilitate optimal system design and decentralized system control. To this end, we develop a closed-form approximation for the...

Order crossovers occur when replenishment orders arrive in a sequence that is different than the one in which they were placed. Order crossovers require that optimal reorder levels be set with regard to the inventory shortfall distribution rather than the lead-time demand distribution. Assuming...