Customer-order information, leadtimes, and inventories
Article Abstract:
Conventional inventory models are extended by considering the scenario in which customers provide advance warning of their demands. This analysis seeks to promote a better understanding of the concept of advance ordering. It focuses on how manufacturers can use early information and how knowledge of future customer demands impacts system performance. The results indicate that advance-ordering information can be used using simple, effective and, in certain instances, optimal policies. They also suggest that the benefits of this information to system performance are similar to those provided by supply leadtime reductions. One suggestion for further research is the examination of the possibility of the information structure being expanded without significant impact on the transparency of the end results.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1995
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Mortgages and Markov chains: a simplified evaluation model
Article Abstract:
A simplified version of stochastic interest-rate models and security- evaluation techniques are presented by using the Markov chain. In addition, mortgage-backed securities are analyzed using the Markov-chain option-pricing framework. This framework is then used to express stochastic interest rates, based mainly on diffusion process. Moreover, pass-through, mortgage-backed securities are collections of similar, fixed-rate mortgages. To simplify the mathematical evaluation of these securities, stochastic interest rates and prepayments are ignored. Direct evaluation models are thereby derived using augmented state space and simulation techniques. Furthermore, simplified evaluation models are derived based on homogeneity and closed-form solutions.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1993
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Critical number policies for inventory models with periodic data
Article Abstract:
Research has examined an infinite-horizon inventory problem with stochastic demands where the data vary periodically. Previous research reveals that a periodic critical-number policy is best. Current research has developed a conceptually simpler approach to these problems, and has created a proof of the optimality of such policies for the average-cost case.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1989
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