Technical Note—Cost Formulas for Continuous Review Inventory Models with Fixed Delivery Lags

Abstract. A cross-regional multi-site inventory system with independent Poisson demand and continuous review (S-1,S) policy, in which there is bidirectional transshipment between the locations at the same area, and unidirectional transshipment between the locations at the different area. According to the M/G/S/S queue theory, birth and death process model and approximate calculation policy, we established inventory models respectively for the loss sales case and backorder case, and designed corresponding procedures to solve them. Finally, we verify the effectiveness of proposed models and methods by means of a lot of contrast experiments.

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Continuous review inventory models with a mixture of backorders and lost sales under fuzzy demand and different decision situations

Expert Systems with Applications ◽

10.1016/j.eswa.2011.09.116 ◽

2012 ◽

Vol 39 (4) ◽

pp. 4181-4189 ◽

Cited By ~ 22

Author(s):

Lin Wang ◽

Qing-Liang Fu ◽

Yu-Rong Zeng

Keyword(s):

Lost Sales ◽

Inventory Models ◽

Continuous Review ◽

Fuzzy Demand

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Stochastic Inventory Models: Continuous Review

Fundamentals of Supply Chain Theory ◽

10.1002/9781119584445.ch5 ◽

2019 ◽

pp. 155-186

Keyword(s):

Inventory Models ◽

Continuous Review ◽

Stochastic Inventory ◽

Stochastic Inventory Models

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Technical Note—Time Inconsistency of Optimal Policies of Distributionally Robust Inventory Models

Operations Research ◽

10.1287/opre.2019.1932 ◽

2020 ◽

Vol 68 (5) ◽

pp. 1576-1584 ◽

Cited By ~ 1

Author(s):

Alexander Shapiro ◽

Linwei Xin

Keyword(s):

Decision Making ◽

Large Class ◽

Risk Measures ◽

Technical Note ◽

Time Inconsistency ◽

Base Stock ◽

Risk Averse ◽

Inventory Models ◽

Optimal Policies ◽

Distributionally Robust

The authors extend previous studies of time inconsistency to risk averse (distributionally robust) inventory models and show that time inconsistency is not unique to robust multistage decision making, but may happen for a large class of risk averse/distributionally robust settings. In particular, they demonstrate that if the respective risk measures are not strictly monotone, then there may exist infinitely many optimal policies which are not base-stock and not time consistent. This is in a sharp contrast with the risk neutral formulation of the inventory model where all optimal policies are base-stock and time consistent.

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