Browsing by Subject "Inventory models"

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    Multi-period inventory models with price protection
    (2007) Ahat, Nurdan
    In an environment with declining sales prices, retailers (or any reseller) often face the risk of buying high and selling low. In order to limit their channel partners’ exposure to such risks and increase the availability of their products in the marketplace, suppliers often offer price protection. With price protection, a retailer is reimbursed with a percentage of the procurement cost declines, for the inventory that the retailer ordered within a given price protection age limit. We study the optimal inventory policy of the retailer under such price protection terms in a multi–period finite horizon setting with stochastic demand. We propose three different models for the treatment of unsatisfied demand. For the case of full backlogging, we show that the order–up–to type policies are optimal. In a numerical study, we study the behavior of the retailer and investigate the impact of price protection terms on the operational performance of the retailer and the supplier under a variety of settings.
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    Spare parts inventory management with delivery lead times and rationing
    (2004) Koçağa, Yaşar Levent
    We study the spare parts service system of a major semiconductor equipment manufacturer facing two kinds of orders of different criticality. The more critical down orders need to be supplied immediately, whereas the less critical maintenance orders allow a given demand lead time to be fulfilled. For this system, we propose a policy that rations the maintenance orders. Under a one-for-one replenishment policy with backordering and for Poisson demand arrivals for both classes, we first derive expressions for the service levels of both classes and then conduct a computational study to illustrate superior system performance compared to a system without rationing. We also conduct a case study with 64 representative parts and show that significant savings are possible through incorporation of demand lead times and rationing.
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    Supplier diversification under binomial yield
    (Elsevier, 2008) Fadıloǧlu, M. M.; Berk, E.; Gürbüz, M. Ç.
    We consider supplier diversification in an EOQ type inventory setting with multiple suppliers and binomial yields. We characterize the optimal policy for the model and show that, in this case, it does not pay to diversify, in contrast to previous results in the random yield literature.