An emergency supply policy for an inventory replenishment model with returns and partial backorders

Nethanel Drezner () and Yonit Barron ()
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Nethanel Drezner: Ariel University
Yonit Barron: Ariel University

Annals of Operations Research, 2024, vol. 343, issue 1, No 7, 175-221

Abstract: Abstract This paper studies a continuous-review inventory replenishment model with a limited storage capacity S in an uncertain environment. We assume that the demands and returns follow independent Poisson processes. We further assume a ra1079 shelf life, a random lead time, and early loss. The storage is managed according to the base-stock (S, s) policy for $$s 0.$$ s 0 . In case of overstock, each returned item exceeding S is transferred to a foreign facility. If during the lead time a demand reaches zero stock, we consider two alternatives: either allow partial backordering up to $$L_{B}$$ L B items, beyond which the unsatisfied demand is lost, or call for an immediate and costly emergency supply up to level $$0

Keywords: Inventory; Base-stock policy; Returns; Emergencies; Backordering (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s10479-024-06261-5

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