While the net present value (NPV) approach is widely accepted as the right frameworkfor studying production and inventory control systems, average cost (AC) models are morewidely used. For the well known EOQ model it can be verified that (under certain conditions)the AC approach gives near...

Among both inventory theorists and practitioners, it is common use to include an opportunity cost rate in the holding cost rate. In that way, the cost of capital can be roughly incorporated in an average cost (AC) inventory model. The traditional way for calculating the opportunity cost rate is...

In this study, we address control policies to manage the collection of products that have been returned by consumers to retailers after they have been sold. Specifically, we model a consumer returns process where the operational decision of interest is the frequency in which returns are picked...