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Inventory management is considered to be an important field in Supply Chain Management because the cost of inventories in a supply chain accounts for about 30 percent of the value of the product. The service provided to the customer…

Neural and Evolutionary Computing · Computer Science 2010-02-11 S. Narmadha , Dr. V. Selladurai , G. Sathish

Supply networks are essential for modern production, yet their critical properties remain understudied. We present a stochastic model with random production capacities to analyze material flow to a root node, focusing on topology and buffer…

Physics and Society · Physics 2025-06-02 Yannick Feld , Marc Barthelemy

When an item goes out of stock, sales transaction data no longer reflect the original customer demand, since some customers leave with no purchase while others substitute alternative products for the one that was out of stock. Here we…

Applications · Statistics 2016-01-15 Benjamin Letham , Lydia M. Letham , Cynthia Rudin

We study a general problem of allocating limited resources to heterogeneous customers over time under model uncertainty. Each type of customer can be serviced using different actions, each of which stochastically consumes some combination…

Artificial Intelligence · Computer Science 2021-08-31 Wang Chi Cheung , Will Ma , David Simchi-Levi , Xinshang Wang

Supply chain disruptions cause shortages of raw material and products. To increase resilience, i.e., the ability to cope with shocks, substituting goods in established supply chains can become an effective alternative to creating new…

General Economics · Economics 2024-01-25 Ambra Amico , Luca Verginer , Giona Casiraghi , Giacomo Vaccario , Frank Schweitzer

Fashion discounters face the problem of ordering the right amount of pieces in each size of a product. The product is ordered in pre-packs containing a certain size-mix of a product. For this so-called lot-type design problem, a stochastic…

Optimization and Control · Mathematics 2016-03-26 Miriam Kießling , Tobias Kreisel , Sascha Kurz , Jörg Rambau

The continuous-review (s,S) inventory model is a cornerstone of stochastic inventory theory, yet its analysis becomes analytically intractable when dealing with non-Markovian systems. In such systems, evaluating long-run performance…

Machine Learning · Computer Science 2026-01-21 Eliran Sherzer , Yonit Barron

Inventory management is a fundamental challenge in supply chain management. The challenge is compounded when the associated products have unpredictable demands. This study proposes an innovative optimization approach combining…

Optimization and Control · Mathematics 2024-02-20 Sarit Maitra

Modeling and optimization of multi-echelon supply chain systems is challenging as it requires a holistic approach that exploits synergies and interactions between echelons while accurately accounting for variability observed by these…

Optimization and Control · Mathematics 2019-01-03 Anshul Agarwal

We study the problem of forecasting the number of units fulfilled (or ``drained'') from each inventory warehouse to meet customer demand, along with the associated outbound shipping costs. The actual drain and shipping costs are determined…

Machine Learning · Computer Science 2025-07-16 Riccardo Savorgnan , Udaya Ghai , Carson Eisenach , Dean Foster

In this article, we consider a continuous review (s, S) inventory system with failures of demand fulfillment (service) modeled as a Markov-modulated retrial queueing system. The inventory system features a single product that experiences…

Probability · Mathematics 2023-07-18 James Cordeiro , Ying-Ju Chen , Andres Larrain-Hubach , Mark Abramson

In this paper we consider a single-server, cyclic polling system with switch-over times. A distinguishing feature of the model is that the rates of the Poisson arrival processes at the various queues depend on the server location. For this…

Probability · Mathematics 2014-08-04 Marko Boon , Sandra van Wijk , Ivo Adan , Onno Boxma

We show how to treat supply networks as physical transport problems governed by balance equations and equations for the adaptation of production speeds. Although the non-linear behaviour is different, the linearized set of coupled…

Statistical Mechanics · Physics 2007-05-23 Dirk Helbing , Stefan Lammer , Thomas Seidel , Petr Seba , Tadeusz Platkowski

We consider inventory decisions with many items, each of which has Poisson demand. The rate of demand for individual items is estimated on the basis of observations of past demand. The problem is to determine the items to hold in stock and…

Methodology · Statistics 2025-08-06 Edward Anderson , Nam Ho-Nguyen , Peter Radchenko

We analyze the behavior of closed product-form queueing networks when the number of customers grows to infinity and remains proportionate on each route (or class). First, we focus on the stationary behavior and prove the conjecture that the…

Probability · Mathematics 2014-04-11 Jonatha Anselmi , Bernardo D'Auria , Neil Walton

We consider a queueing system with $n$ parallel queues operating according to the so-called "supermarket model" in which arriving customers join the shortest of $d$ randomly selected queues. Assuming rate $n\lambda_{n}$ Poisson arrivals and…

Probability · Mathematics 2017-01-19 Patrick Eschenfeldt , David Gamarnik

In retail (e.g., grocery stores, apparel shops, online retailers), inventory managers have to balance short-term risk (no items to sell) with long-term-risk (over ordering leading to product waste). This balancing task is made especially…

Machine Learning · Computer Science 2023-05-29 Sami Jullien , Mozhdeh Ariannezhad , Paul Groth , Maarten de Rijke

We consider a stochastic, dynamic job scheduling problem, formulated as a queueing control problem, in which a single server processes jobs of different types that arrive according to independent Poisson processes. The problem is defined on…

Optimization and Control · Mathematics 2025-09-09 Dongnuan Tian , Rob Shone

In this paper, we consider an infinite horizon, continuous-review, stochastic inventory system in which cumulative customers' demand is price-dependent and is modeled as a Brownian motion. Excess demand is backlogged. The revenue is earned…

Optimization and Control · Mathematics 2018-07-12 Dacheng Yao

Supply chain formation is the process of determining the structure and terms of exchange relationships to enable a multilevel, multiagent production activity. We present a simple model of supply chains, highlighting two characteristic…

Artificial Intelligence · Computer Science 2011-07-04 W. E. Walsh , M. P. Wellman