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...

This paper introduces recent developments in the analysis of inventory systems with partial observations. The states of these systems are typically conditional distributions, which evolve in infinite dimensional spaces over time. Our analysis involves introducing unnormalized probabilities to...

This work aims at investigating the influence of picking batch size to average time in system of orders in a one-aisle warehouse under the assumption that order arrivals follow a Poisson process and items are uniformly distributed over the aisle's length. We model this problem as an M/G[k]/1...

Care must be taken in extending the formulation and solution methodology of Federgruen and Zheng (1992) to include a stockout cost of a different dimensionality: $/unit, rather than $/unit/year. Federgruen and Zheng formulate this extended model for Poisson demand. We modify their formulation to...

A production and inventory control problem is solved by a modified computational dynamic programming procedure. Specifically a two dimensional problem described by differential system equations with an integral objective function is solved by the proposed scheme. The numerical results are...

This paper proposes a new methodology to solve partially observed inventory problems. Generally, these problems have infinite dimensional states that are conditional distribution of the inventory level. Our methodology involves linearizing the state transitions via unnormalized probabilities. It...

We analyze a price-setting news-vendor problem with an additive – multiplicative demand. We show that the uni-modality of the news-vendor profit function holds when the underlying random term has an increasing failure rate and the demand functions satisfy certain concavity conditions....

In this paper we derive useful sufficiency optimality conditions for a class of optimal control problems subject to differential inclusions and involving non-differentiable functions. A production inventory problem is solved to illustrate our results

This paper proposes a new methodology to solve partially observed inventory problems. Generally, these problems have infinitedimensional states that are conditional distribution of the inventory level. Our methodology involves linearizing the state transitions via unnormalized probabilities. It...

We extend the classical newsvendor problem by introducing a service constraint and a demand forecast update. The newsvendor orders an initial amount and has the possibility to adjust the initial order after she observes a demand updating signal. She also commits to a target service level before...