The single-item stochastic lot-sizing problem is to find an inventory replenishment policy in the presence of a stochastic demand under periodic review and finite time horizon. The computational intractability of computing an optimal policy is widely believed and therefore approximation...

Many companies have started segmenting customers to better match their products and services to the needs of the customers. We support this development by presenting a stochastic model of a rental system with two customer classes that was motivated by the operations of one of Europe's leading...