Kevin H. Shang

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F many companies, inventory record inaccuracy is a major obstacle to achieving operational excellence. In this paper, we consider an inventory system in which inventory records are inaccurate. The manager makes inventory inspection and replenishment decisions at the beginning of each period. There is a cost associated with each inspection. If an inspection(More)
We consider the classic N -stage serial supply systems with linear costs and stationary random demands. There are deterministic transportation leadtimes between stages, and unsatisfied demands are backlogged. The optimal inventory policy for this system is known to be an echelon base-stock policy, which can be computed through minimizing N nested convex(More)
This paper studies a periodic-review, serial inventory system in which echelon r nQ T policies are implemented. Under such a policy, each stage reviews its inventory in every T period and orders according to an echelon r nQ policy. Two types of fixed costs are considered: one is associated with each order batch Q, and the other is incurred for each(More)
Consider a continuous-review, serial inventory system with N stages. Material flows from stage N to stage N − 1, N − 1 to N − 2, etc., until stage 1, where stationary compound Poisson demand occurs. Let and denote the demand rate and the mean of demand size, and D t denote the demand over a time interval t. There is a constant lead time Lj for stage j .(More)
Inventory record inaccuracy leads to ineffective replenishment decisions and deteriorates supply chain performance. Conducting cycle counts (i.e., periodic inventory auditing) is a common approach to correcting inventory records. It is not clear, however, how inaccuracy at different locations affects supply chain performance and how an effective cycle-count(More)
C often face nonstationary demand due to product life cycles and seasonality, and nonstationary demand complicates supply chain managers’ inventory decisions. This paper proposes a simple heuristic for determining stocking levels in a serial inventory system. Unlike the exact optimization algorithm, the heuristic generates a near-optimal solution by solving(More)
T paper studies a periodic-review, serial supply chain in which materials are ordered and shipped according to R nQ policies. Three information scenarios are considered, depending on the level of information available: echelon, local, and quasilocal. In the echelon scenario, each stage can access the inventory and cost information within its echelon(More)