We consider the situation of a family of items sharing a common supplier or common production facility. There is a major setup (header) cost to make a replenishment of the family and a minor (line) cost for each item included in the replenishment. In such a setting it makes sense to coordinate...

We consider inventory policies for a continuous review system with discrete compound Poisson demand, convex holding-penalty cost and fixed order cost. Beckmann has showri that under these conditions (s, S) policies are optimal. We develop recursive formulae to calculate the cost for any pair (s,...

A style goods item has a finite selling period during which the sales rate varies in a seasonal and, to some extent, predictable fashion. There are only a limited number of opportunities to purchase or manufacture the style goods item, and the cost, in general, will depend on the time at which...

This note provides the methodology to construct a set of indifference curves that permit the exact determination of the optimal inventory level in a system where items are restocked one at a time and unsatisfied demand is lost. An illustrative set of curves is shown.

We consider the situation of a single item having a deterministic, time-varying demand pattern. Production lot sizes, so as to minimize the total of setup and carrying costs, are to be determined subject to production capacity restrictions that can vary with time. Two important theorems...