Retailers often face a newsvendor problem, i.e., they must order their inventory prior to a short selling period with uncertain demand. The uncertainty can be reduced by advance selling because not only are advance orders certain, but the remaining demand can be better forecasted. Consumers,...

Inventory inaccuracy is common at retailers. At many retailers, a cash register records incoming orders and outgoing sales, but not the demand or the shrinkage. The shrinkage refers to spoilage or pilferage of inventory. The demand differs from the sales in the periodic-review lost-sales...

The book is concerned with the problems of inventory and supply chain decision making with information updating over time. The models considered include inventory decisions with multiple sources and delivery modes, supply-contract design and evaluation, contracts with exercise price,...

This paper is concerned with a generalization of classical inventory models (with fixed ordering costs) that exhibit (s, S) policies. In our model, the distribution of demands in successive periods is dependent on a Markov chain. The model includes the case of cyclic or seasonal demand. The...

Information delays exist when the most recent inventory information available to the Inventory Manager (IM) is dated. In other words, the IM observes only the inventory level that belongs to an earlier period. Such situations are not uncommon, and they arise when it takes a while to process the...

This paper is concerned with a periodic-review inventory system with three consecutive delivery modes (fast, medium, and slow) and demand forecast updates. At the beginning of each period, the inventory level and demand information are updated and decisions on how much to order using each of the...

This paper revisits the classical papers of Iglehart (Ref. 1) and Veinott and Wagner (Ref. 2) devoted to stochastic inventory problems with the criterion of long-run average cost minimization. We indicate some of the assumptions that are used implicitly without verification in their stationary...