Analysis of an inventory system under backorder correlated deterministic demand and geometric supply process

Argon, NT
Gullu, R
Erkip, N
In this article we propose a single item, periodic review model that investigates the effects of changes in the demand process that occur after stockout realizations. We investigate a system where the demands in successive periods are deterministic but affected by the backorder realizations. In order to capture the effects of changes in the demand process we use a geometric type supply availability. We analytically derive the necessary components for obtaining profit related performance measures and provide computational analysis.


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Gullu, R; Onol, E; Erkip, N (Informa UK Limited, 1997-08-01)
In this article we investigate a periodic review inventory model under deterministic dynamic demand and supply unavailability. In a given period, supply is either available or completely unavailable with given probabilities. Supply unavailability probabilities are nonstationary over time. We show the optimality of an order-up-to level policy, and obtain a newsboy-like formula that determines the optimal order-up-to levels. Our formula would provide guidence as to the appropriate amount of inventory to stock...
Analysis of an inventory system under supply uncertainty
Gullu, R; Onol, E; Erkip, N (Elsevier BV, 1999-03-20)
In this paper, we analyze a periodic review, single-item inventory model under supply uncertainty. The objective is to minimize expected holding and backorder costs over a finite planning horizon under the supply constraints. The uncertainty in supply is modeled using a three-point probability mass function. The supply is either completely available, partially available, or the supply is unavailable. Machine breakdowns, shortages in the capacity of the supplier, strikes, etc., are possible causes of uncerta...
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Polat, Onur; Hayfavi, Azize; Department of Financial Mathematics (2009)
In this study, the geometric Additive market models are considered. In general, these market models are incomplete, that means: the perfect replication of derivatives, in the usual sense, is not possible. In this study, it is shown that the market can be completed by new artificial assets which are called “power-jump assets” based on the power-jump processes of the underlying Additive process. Then, the hedging portfolio for claims whose payoff function depends on the prices of the stock and the power-jump ...
Additional factor in asset-pricing: Institutional ownership
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In this paper, we hypothesize that institutional investor variable is a proxy for some systematic risk factors, which should be incorporated into the asset-pricing model. Mimicking portfolio for institutional ownership, called IMI (Institutional minus Individual), is constructed. Including IMI to the Carhart's 4-factor model captures the common variations in returns better than all other models that are tested. Consistent with the literature, the new 5-factor model improves mispricing mostly in portfolios i...
Analysis of an inventory system with advance emand information and supply uncertainty
Arıkan, Emel; Süral, Haldun; Department of Industrial Engineering (2005)
In this study we address a periodic review capacitated inventory system with supply uncertainty where advance demand information is available. A stochastic dynamic programming formulation is applied with the objective of minimizing the expected inventory related costs over a finite horizon. Three different supply processes are assumed. Under the all-or-nothing type supply process and partially available supply process, the structure of optimal policy is proved to be a base stock policy and numerical example...
Citation Formats
N. Argon, R. Gullu, and N. Erkip, “Analysis of an inventory system under backorder correlated deterministic demand and geometric supply process,” INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS, pp. 247–254, 2001, Accessed: 00, 2020. [Online]. Available: