This paper considers an inventory system which maintains stock to meet both high and low priority demands. This model is suggested by the operation of a spare parts pool in a military depot: high priority demands are those which might result in the grounding of an aircraft, for example, while...

In my recent paper "A Minimax Ordering Policy for the Infinite Stage Dynamic Inventory Problem," Management Sci., Vol. 24, No. 11 (July 1978), pp. 1138-1145, I noticed some errors in the proof of Theorem A.5 in the Appendix which made the proof somewhat incomplete. I have given below a correct...

The marginal cost information needed to implement traditional inventory models is not likely to be available in practice. The most important inventory management issues in practive involve aggregate objectives and constraints while the richest theoretical models deal with single item management....

This paper considers the optimal control of a production system which is composed of two distinct production processes, types A and B, that produce two different products, 1 and 2, having distinct random demands. Production type A produces both products in amounts determined by a fixed set of...

This paper concerns a multilocation newsboy problem with normal demand at each location and identical linear holding and penalty cost functions at each location. Consolidation of demand from several facilities is considered, and an expression is derived for the resulting expected holding and...

A production line is treated as a series arrangement of k work stations. An unlimited supply of raw production items is available at the first station, and each item passes through all of die stations in sequence. The service time for a single item at station j is assumed to be a random variable...

This paper considers the impact of tax liabilities on optimal inventory policy through the medium of FIFO and LIFO tax valuation schemes in a stochastic environment. The relationship between inventory policy and changes in either the rate of inflation or the corporate tax rate is investigated....