We study manufacturing firms’ asymmetric inventory investment in response to sales changes. Focusing on the costs of resource adjustment and stockout which likely differ in sales-increasing and sales-decreasing periods, we predict and find that inventory investment declines less during periods...

This paper constructs a model of a supply chain to examine how demand volatility is passed upstream through the chain. In particular, we seek to determine how likely it is that the chain experiences a bullwhip effect, where the variance of the upstream firm's production exceeds the variance of...

This paper constructs a model of a supply chain to examine how demand volatility is passed upstream through the chain. In particular, we seek to determine how likely it is that the chain experiences a bullwhip effect, where the variance of the upstream firms’ production exceeds the variance of...

The basic financial purpose of a firm is to maximize its value. An inventory management system should also contribute to the realization of this basic aim. Many current asset management models found in financial management literature were constructed with the assumption of book profit...

This article analyzes a discrete time lost sales inventory system with partially observed demand and unobserved shrinkages which happen both before and after the demand realization. When the demand exceeds the remaining inventory, the unmet demand is lost and unobserved. This problem in general...

Working within the framework of a finite population, dynamic inventory optimization model where future demand is endogenous to inventory policy, this paper considers the effect of customer referrals and forced exit from the market caused by the loss of market share due to customer defections....

Maximization of wealth of its owners is the basic financial aim in management of enterprise. Inventory management must contribute to realization of this aim. The paper presents value-based inventory management model (EOQ) modification

This paper evaluates the impact of misinformation for inventory systems with product returns. Ifone could exactly know how much is going to be returned and when, one would certainly benefitfrom incorporating this perfect information a priori in the management of production, inventory,and...

Problem definition: We consider a production system where a certain resource is used as the key raw material. The firm needs to decide the production quantity in each period facing stochastic demand and subject to the resource capacity constraint. The resource is self-renewable, and the growth...