Inventory Control with Generalized Expediting

Huggins, Eric; Olsen, Tava Lennon

doi:10.1287/opre.1100.0820

Cited by 42 publications

(23 citation statements)

References 40 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The models of Groenevelt and Rudi (2003), Huggins and Olsen (2006), Gallego et al (2007), and Kouvelis and Tang (2007) encompass dynamic expediting; they allow units in transit to change routes based on current information about supply conditions, whereas our orders follow fixed routes once they are placed. (Their models are simpler in other dimensions, however.)…”

Section: Summary and Discussionmentioning

confidence: 99%

Inventories with Multiple Supply Sources and Networks of Queues with Overflow Bypasses

2009

View full text Add to dashboard Cite

Consider an inventory system with multiple supply sources and Poisson demand. The replenishment lead times from each source are stochastic, representing congestion and disruption. We develop performance evaluation and optimization tools for a family of reasonable order policies. These policies take into account real-time supply information, which can be obtained through tracking technologies such as global positioning systems and radio frequency identification. Performance evaluation of such state-dependent policies is generally hard. The main thrust of this paper is to show that, under these policies, the supply system becomes a network of queues with a special routing mechanism called an overflow bypass. The solution has a simple product form. Thus, we obtain closed-form performance measures. These results reinterpret and extend the existing analysis of a system with two sources having deterministic lead times. We further extend the analysis to batch ordering policies, non-Poisson demand processes, and multiple demand classes.inventories, multiple supply sources, stochastic lead times, queuing networks, product-form solutions

show abstract

Section: Summary and Discussionmentioning

confidence: 99%

Inventories with Multiple Supply Sources and Networks of Queues with Overflow Bypasses

2009

View full text Add to dashboard Cite

show abstract

“…Assumption (a) is a technical assumption that has been widely used in the literature (e.g., Huggins and Olsen , Li and Yu , Rosling ). The class of

P F_{2}

distributions includes many commonly used distributions and has useful smoothing properties.…”

Section: Characterization Of the Optimal Policymentioning

confidence: 99%

Shelf Life Extending Packaging, Inventory Control and Grocery Retailing

2017

Production and Operations Management

View full text Add to dashboard Cite

Retailers of perishable goods are often faced with the choice between more expensive packaging that can extend shelf life of their products and less expensive packaging that cannot. Different choices will lead to different sales, costs, and waste, and different choices require different inventory control policies. In this paper, we study the coordination of inventory and packaging decisions in a retailing environment. Items in an active package have a longer lifetime than those in a regular package and cost more. Customers always pick items with a longer lifetime first. When items with a longer lifetime are out of stock, a portion of customers are willing to buy less fresh items as substitutes. Our study shows the optimality of a “separation” policy when the substitution rate is high. In the separation policy, as the initial inventory level increases, the optimal policy changes from using active packaging only, then to using regular packaging only, and finally to ordering nothing. These results are very specific to the way perishable inventories are depleted in retailing. Our numerical study shows that although it may not be optimal in terms of cost, the adoption of active packaging can consistently achieve substantial waste reduction.

show abstract

“…The special case, where the emergency order can only arrive as late as possible, is studied in Tagaras and Vlachos [15]. For the case where shortages are not allowed and there is a possibility of expediting over night with multiple modes of transportation having different fixed order costs, Huggins and Olsen [6] develops a dynamic programming model assuming periodic review and an infinite horizon. They develop optimality properties and show that the regular production policy is of type (s, S).…”

Section: Literature Reviewmentioning

confidence: 99%