In this paper we analyse the effect of satisfying in a different way customers with an order larger than a prespecified cutoff transaction size, in a simple newsboy setting. For compound Poisson demand with discrete order sizes, we show how to determine the expected costs and the optimal cutoff...

In this paper we review the literature on multi-component maintenance models with economic dependence. The emphasis is on papers that appeared after 1991, but there is an overlap with Section 2 of the most recent review paper by Cho and Parlar (1991). The classification scheme that we choose is...

We analyze the classical inventory model with backordering, where the inventory position is controlled by an order level, order quantity policy. The cost for a backorder contains a fixed and a time-proportional component. Demand can be driven by any discrete process. Order lead times may be...

In this chapter we discuss a tactical optimisation problem that arises in a multistage distribution system where customer orders can be delivered from any stockpoint. A simple rule to allocate orders to locations is a break quantity rule, which routes large orders to higher-stage stockpoints and...

Whenever demand for a single item can be categorized into classes of different priority, an inventory rationing policy should be considered. In this paper we analyse a continuous review (s,Q) model with lost sales and two demand classes. A so-called critical level policy is applied to ration the...

Demand for spare parts can sometimes be classified into critical and non-critical demand, depending on the criticality of the equipment in which it is installed. To effectively handle this situation in spare parts inventory control, we propose a stocking policy where some of the stock is...

In this chapter we discuss inventory systems where several demand classes may be distinguished. In particular, we focus on single-location inventory systems and we analyse the use of a so-called critical level policy. With this policy some inventory is reserved for high-priority demand. A number...

A maintenance activity carried out on a technical system often involves a system-dependent set-up cost that is the same for all maintenance activities carried out on that system. Grouping activities thus saves costs since execution of a group of activities requires only one set-up. Many...

In this paper the effect of the break quantity rule on the inventory costs in a 1-warehouse, N-retailers distribution system is analyzed. The break quantity rule is to deliver large orders from the warehouse, and small orders from the nearest retailer, where a so--called break quantity...

Products which are sold through E-commerce or mail sales catalogues tend to have a much higher return rate than traditional products. The returns are especially problematic for seasonal products. To support decision making in these situations we study various options, which may be considered as...