In this paper, we consider a supply-chain model consisting of single product, one supplier, and multiple retailers. Demand at the retailers is random, but stationary. Each retailer places her orders to supplier according well-known (Q,R) policy. We assume that has online information about demand, as well inventory activities product each retailer, uses when making order/replenishment decisions. first propose replenishment policy for which incorporates position Then, provide an exact analysis...

In this paper, we develop an approximate model of inventory control system in which there exist two options for resupply, with one having a shorter lead-time. We assume that demand and the fixed ordering costs are small relative to holding cost so one-for-one policy is appropriate. consider placing emergency orders uses information about age outstanding orders. derive steady-state behavior present some computational results.

In this paper we study an unreliable bottleneck production/inventory system with a constant production and demand rate that is subject to random disruptions. We assume the restoration times are constant, time between breakdowns exponential, setup cost and/or positive, excess backordered. propose (s, S) policy for such systems develop expressions operating characteristics of system. The properties parameters minimize expected total investigated procedure finding their optimal values...

In multi-echelon repairable inventory systems with high set-up cost for order and/or demand rates, the use of batch ordering may be more cost-effective than common (S − 1, S) policy. This paper addresses issue determining optimal size and stocking levels at locations in such a system. A power approximation is used to estimate total system stock backorder from which can readily determined. search routine involving “one-pass” searches are then followed obtain depot local sites procedure has...

Problem definition: Cloud computing is recognized as a critical driver of information technology–enabled innovations. The operations management (OM) community, however, has not been exposed enough to the essential problems that arise from cloud value chains. Academic/practical relevance: In this paper, we examine recent research on chains and explore future opportunities an OM perspective. particular, focus major challenges facing provider in three problem domains: (1) resource management,...

Abstract In this paper, we examine the issue of order coordination between a supplier and multiple retailers in decentralized multi-echelon inventory/distribution system where provides product to who experience static demand standard inventory costs. Specifically, propose analyze new policy manufacturer, outsources production an Original Equipment Manufacturer, offers price discount when they coordinate timing their orders with manufacturer's cycle. We show that our proposed can lead more...

Abstract In this paper we present a model for multi-echelon repairable systems with batch ordering policy at the bases. Such an is desirable when demand rates and/or set up cost are relatively high. Operating characteristics of such system analyzed. A two-parameter approximation scheme distribution number orders outstanding and consequently backorders developed, its performance evaluated. It found that, under variety scenarios including both finite infinite servers repair facility, very...

Cloud computing has been a rising trend in the business world. In this study, we consider two most important pricing schemes offered to sustained customers by major service providers cloud industry: reservation‐based scheme (the R‐scheme) Amazon or Microsoft, and utilization‐based U‐scheme) Google. We duopoly model with heterogeneous characterized mean coefficient of variation their usage. show that under either scheme, effective price is essentially an increasing function usage, thus both...

In this paper, we study the impact of coordinated replenishment and shipment in inventory/distribution systems. We analyze a system with multiple retailers one outside supplier. Random demand occurs at each retailer, supplier replenishes all retailers. traditional inventory models, retailer orders directly from whenever need arises. present new, centralized ordering policy that for simultaneously. The new is equivalent to introduction warehouse no charge ordering, allocation, distribution...

We study a supply chain involving supplier–retailer relationship. When production lead-time is long and the selling season short, retailer has to place an order ahead of season, which resembles classical Newsvendor model. However, we consider situation when supplier agrees deliver in multiple shipments then needs determine quantity and/or timing each shipment. Under centralized setting, derive optimal decisions retailer. decentralized incentive misalignment arises from ineffective allocation...

We consider a long term contractual agreement between buyer and seller in which Q units are delivered to the at regular time intervals. It must be true that delivery quantity, Q, is less than mean demand per period. In order manage inventory, has option of adjusting quantity upwards just prior delivery, but pay premium do so. Demand assumed random, we model system continuous review setting. show equations one solve find optimal adjustment strategies intractable. A diffusion approximation...

In this paper we study a (S-1, S) type multiechelon inventory system where all the stocking locations have option to replenish their through either normal or more expensive emergency resupply channel. When ordering unit, each location decides which channel use based on its level and remaining leadtimes of outstanding orders. We consider implications policy by developing expressions for operating characteristics describing procedure finding optimal parameters. A numerical presented in...

In this paper we consider an (S − 1, S) inventory system with Poisson demand and constant resupply times. An arriving customer facing stockout will either backorder or withdraw its order. Expressions describing steady state operating characteristics of the expected total cost rate are developed. Furthermore, behavior as function relevant parameters is explored.

As a result of imperfect production and inspection by suppliers, pilferage, and/or damage in transit, it is common that procurement orders may contain defective items. This article deals with continuous-review inventory system Poisson demand arrivals constant resupply time. Items lots not be perfect quality. The operating characteristics such are analyzed. For purposes computational savings, an approximation scheme for the presented. approximation, determination optimal ordering policy...

Problem definition: The recent surge in demand for cloud services has posed a significant capacity-expansion problem infrastructure providers. Although the growth of capacity attributes—for example, CPU and RAM—is disproportionate, these attributes are often provided preconfigured packages (cluster-types), fixed ratio package does not match with time-varying demand. We analyze class expansion policies to determine timing magnitude expansions, using cluster-types, we examine optimal...

Rapid growth in the cloud industry not only provides tremendous opportunities to providers who have invested heavily computing capacities, but also leads low utilization of capacities at times. To alleviate this problem, some launched a low-priority service with so-called preemptible or spot instances, which allows them reclaim when necessary. This study focuses on an emerging market segment customers fault-tolerant jobs, are potential users instances. Through analytical model that captures...

This paper considers the replenishment and stocking decision for inventory systems in which price discounts, referred to as deals, are offered by supplier (or market place) at random points time. Assuming that demand is constant over time, times between deal offerings exponentially distributed order leadtimes negligible, we derive expressions evaluating operating characteristics of model. Moreover, determining optimal policy parameters such present results on behavior parameters. Our easy...

We develop a model and analyze reverse information sharing, growing business practice in supply chain management which manufacturer shares about with retailer. the as production queue finished goods warehouse, retailer an inventory location, other customers external demand stream. In our model, allows access to status at warehouse. To take advantage of this new information, changes from single-level base-stock policy two-level, state-dependent policy. provide exact method for computing...

In this paper we study a multi-echelon production/distribution system where the retail centers are allowed to replenish their inventory through normal resupply channel or an expedited by incurring additional cost. An approximation scheme find operating characteristics of such systems is developed. The results numerical indicate that significant cost savings can be achieved using policy suggested in paper.

In this paper, we consider an inventory system where orders may arrive in two shipments, that is, the first shipment of order contain only part items ordered, while rest a second shipment. However, amount is random. Such situations arise when supplier partially fills if it does not have sufficient stock to satisfy demanded order, or arriving contains defective can be returned and replaced by at some later date. We present operating characteristics approximate cost function for such system....