We consider a stochastic multi-product inventory model with a ware-housing constraint with the objective of minimizing the expected long-run average cost. Using the vanishing discount approach, a dynamic programming equation and the corresponding verification result are established. The...

We deal with a retailer's multi-product inventory system where customers randomly seek acceptable substitutes if their initial requests are not satisfied. If the substitute is also unavailable, the sales request is lost. Besides the already complex multi-product inventory management problem...

The Economic Production Quantity (EPQ) model is often used in the manufacturing sector to assist firms in determining the optimal production lot size that minimizes overall production-inventory costs. There are some assumptions in the EPQ model that restrict this model for real-world...