Inventory Theory

Abstract

Please scroll down for article-it is on subsequent pages With 12,500 members from nearly 90 countries, INFORMS is the largest international association of operations research (O.R.) and analytics professionals and students. INFORMS provides unique networking and learning opportunities for individual professionals, and organizations of all types and sizes, to better understand and use O.R. and analytics tools and methods to transform strategic visions and achieve better outcomes. For more information on INFORMS, its publications, membership, or meetings visit http://www.informs.org

Time and State Dependence in an Ss Decision Experiment

“…3 To illustrate, Figure 1 plots log price adjustments using AC Nielsen data (the data were constructed 1 As summarized in Caplin and Leahy (2010), the development of Ss models grew out of an interest in understanding how to manage inventories. Arrow et al (1951) showed that Ss policies are cost minimizing in infinite horizon inventory problems while Scarf (1959) demonstrated that optimal decisions in a large class of such inventory problems take an Ss form. Given the pervasiveness of both uncertainty and fixed costs of adjustment in economics, Ss models have since been deployed in a wide range of applications in economics including the interaction of portfolio choice and housing demand (Grossman and Laroque (1990)), the demand for durables (Bertola and Caballero (1990)), portfolio choice and stock ownership (Vissing-Jorgensen (2002)), investment (Abel and Eberly (1994)), the decision of countries to exit the Euro (Alvarez and Dixit (2013)) and price adjustment (Barro (1972) and Sheshinski and Weiss (1977)).…”

Neuro-dynamic programming for cooperative inventory control

“…We show that the threshold policies assumed in [3], are strictly connected to the well known (s, S) policies [9], [8]. In some cases, we prove that a optimal policy, for each ith retailer, is to order only in conjunction with at least other l i − 1 retailers.…”

Determination of the Storage of the Area Requirements for İzmir Container Port by Implementing the Neural Networks

“…Inventory theory is a sub-branch of the operation research area considering the design of the inventory systems to minimize the related costs [12]. Particularly for the storageyard optimization in a seaport, inventory theory offers a mathematical optimization method for determining the feasible storage area capacity.…”