Joint management of finished goods inventory and demand process for a make-to-stock product: A computational approach

IEEE Transactions on Automatic Control

Volumn 51, Issue 2, 2006, Pages 258-273

  Chen, Liuxin ^a   Feng, Youyi ^a   Ou, Jihong ^b  

^a CHINESE UNIVERSITY OF HONG KONG   (Hong Kong)

^b NATIONAL UNIVERSITY OF SINGAPORE   (Singapore)

Author keywords

Demand process management; Dynamic pricing; Finished goods inventory management; Make to match production; Poisson demand; Production control

Indexed keywords

ALGORITHMS; INVENTORY CONTROL; MANAGEMENT; OPTIMIZATION;

DEMAND PROCESS MANAGEMENT; DYNAMIC PRICING; FINISHED GOODS INVENTORY MANAGEMENT; MAKE-TO-MATCH PRODUCTION; OPTIMAL MANAGEMENT; POISSON DEMAND; PRODUCTION RATE;

PRODUCTION CONTROL;

EID: 33244464092     PISSN: 00189286     EISSN: None     Source Type: Journal    
DOI: 10.1109/TAC.2005.863484     Document Type: Article

References (26)

1. D. Bertsimas and I. C. Paschalidis, "Probabilistic service level guarantees in make-to-stock manufacturing systems," Oper. Res., vol. 49, pp. 119-133, Jan./Feb. 2001.
2. L. Chan, D. Simchi-Levi, and J. Swann, "Dynamic pricing strategies for manufacturing with stochastic demand and discretionary sales," Georgia Inst. Technol., Atlanta, GA, 2002.
3. Y. Chen, Y. Feng, and J. Ou, "Management of inventory replenishment and available offerings for goods sold with optional value-added packages," IIE Trans., pp. 397-406, May 2005.
4. X. Chen and D. Simchi-Levi, "Coordinating inventory control and pricing strategy with random demand and fixed ordering cost: The finite horizon case," Oper. Res., vol. 52, pp. 887-896, Nov./Dec. 2004.
5. X. Chen and D. Simchi-Levi, "Coordinating inventory control and pricing strategy with random demand and fixed ordering cost: The infinite horizon case," Math. Oper Res., vol. 29, pp. 698-723, Aug. 2004b.
6. W. Elmagbraby and P. Keskinocak, "Dynamic pricing in the presence of inventory considerations: Research overview, current practices, and future directions," Manag. Sci., vol. 49, pp. 1287-1309, Oct. 2003.
7. A. Federgruen and A. Heching, "Combined pricing and inventory control under uncertainty," Oper. Res., vol. 47, pp. 454-475, May/Jun. 1999.
8. Y. Feng and Y. Chen. Joint pricing and inventory control with setup costs and demand uncertainty. [Online]. Available: Www.se.cuhk.edu.hk/ ~yhchen, 2002a
9. Y. Feng and Y. Chen, Optimality and optimization of a joint pricing and inventory-control policy for a periodic-review system. [Online]. Available: Www.se.cuhk.edu.hk/~yhchen, 2002b
10. Y. Feng and H. Yan, "Optimal production control in a discrete manufacturing system with unreliable machines and random demands," IEEE Trans. Autom. Control, vol. 45, no. 12, pp. 2280-2296, Dec. 2000.
11. Y. Feng and B. Xiao, "Optimal threshold control in discrete failure-prone manufacturing systems," IEEE Trans. Autom. Control, vol. 47, no. 7, pp. 1167-1174, Jul. 2002.
12. B. Gavish and S. Graves, "A one-product production/inventory problem under continuous review policy," Oper. Res., vol. 28, pp. 1228-1236, Sep./Oct. 1980.
13. A. Y. Ha, "Optimal dynamic scheduling policy for a make-to-stock production system," Oper. Res., vol. 45, pp. 42-53, Jan./Feb. 1997.
14. R. Kapuscinski and S. R. Tayur, "Optimal policies and simulation based optimization for capacitated production inventory systems," in Quantitative Models for Supply Chian Management, S. R. Tayur, R. Ganeshan, and M. Magazine, Eds. Dordrecht, The Netherlands: Kluwer, 1999, pp. 7-40.
15. L. Li, "A stochastic theory of the firm," Math. Oper. Res., vol. 13, pp. 447-465, Aug. 1988.
16. N. Petruzzi and M. Dada, "Pricing and the newsvendor problem: A review with extensions," Oper. Res., vol. 47, pp. 183-194, Mar./Apr. 1999.
17. R. Akella and P. R. Kumar, "Optimal control of production rate in a failure-prone manufacturing system," IEEE Trans. Autom. Control, vol. AC-31, no. 1, pp. 116-126, Jul./Aug. 1986.
18. S. M. Ross, Applied Probabilistic Models with Optimization Applications. San Francisco, CA: Holden-Day, 1970.
19. M. Sobel, "The optimality of full-service policies," Oper. Res., vol. 30, pp. 636-649, Jul./Aug. 1982.
20. T. R. Bielecki and P. R. Kumar, "Optimal of zero-inventory policies for unreliable manufacturing systems," Oper. Res., vol. 36, pp. 532-541, Jul./Aug. 1988.
21. L. Thomas, "Price-production decisions with deterministic demand," Manag. Sci., vol. 16, pp. 747-750, Jul. 1970.
22. G. T. Thowsen, "A dynamic nonstationary inventory problem for a price/quantity setting firm," Naval Res. Logist. Quart., vol. 22, pp. 461-476, 1975.
23. M. H. Veatch and L. M. Wein, "Scheduling a make-to-stock queue," Oper. Res., vol. 44, pp. 643-647, Jul./Aug. 1996.
24. L. M. Wein, "Dynamic scheduling of a make-to-stock queue," Oper. Res., vol. 40, pp. 724-735, Jul./Aug. 1992.
25. T. M. Whitin, "Inventory control and price theory," Manag. Sci., vol. 2, pp. 61-68, Oct. 1995.
26. Y. S. Zheng and P. Zipkin, "A queueing model to analyze the value of centralized inventory information," Oper. Res., vol. 38, pp. 296-307, Mar./Apr. 1990.