We consider the optimal production and inventory allocation of a single-product assemble-to-order system with multiple demand classes and lost sales. Each component is replenished by a dedicated machine that is subjected to unpredictable breakdowns. We find that the machine state not only...

We consider a make-to-stock system served by an unreliable machine that produces one type of product, which is sold to customers at one of two possible prices depending on the inventory level at the time when a customer arrives (i.e., the decision point). The system manager must determine the...

This paper studies the purchasing behaviour of a loss-averse engineer-to-order manufacturer, who purchases a key component for his final product from a supplier under a single-wholesale-price contract with spot purchase opportunities, where both the product demand and the component spot price...

In this paper, we study a logistics network design problem with vendor managed inventory in which the company is in charge of managing inventory for its downstream warehouses and retailers, and can choose whether to satisfy each retailer's demand. The problem incorporates the location,...

We consider a newsvendor who makes an ordering decision to meet stochastic demand and buys a put option written on the demand to hedge against the risk of low demand to maximize his expected utility, which is measured by the conditional value-at-risk (CVaR). The put option is fairly priced with...

We study the risk-averse newsvendor model with a mean-variance objective function. We show that stockout cost has a significant impact on the newsvendor's optimal ordering decisions. In particular, with stockout cost, the risk-averse newsvendor does not necessarily order less than the...

This paper addresses a three-machine assembly-type flowshop scheduling problem, which frequently arises from manufacturing process management as well as from supply chain management. Machines one and two are arranged in parallel for producing component parts individually, and machine three is an...

With the growing importance of logistics to the economies of Hong Kong and China, logistics information systems (LIS) are becoming essential tools for companies in Hong Kong and China to successfully compete in a global market. However, little empirical research has been conducted to study the...