Value of Disruption Information in an EOQ Environment

Value of Disruption Information in an EOQ EnvironmentIsmail Serdar Bakal, Z. Pelin Bayindir, Deniz Esin EmerWe consider an infinite-horizon, continuous-review inventory modelwith deterministic, stationary demand where supply is subject to disruption.The supply process alternates randomly between ON and OFFstates. Backlogging is allowed only when the supplier is disrupted. Weseek the value of disruption information which enables the firm to placean extra order when supply is disrupted. We derive the long-run averagecost utilizing the renewal theory, and characterize the order-up-tolevels. We also compare the results to the setting with no disruption order opportunity.


Value of disruption information in an EOQ environment
Bakal, İsmail Serdar; Bayındır, Zeynep Pelin (2017-12-01)
We consider an infinite horizon, continuous review inventory model with deterministic stationary demand where supply is subject to disruption. The supply process alternates between two states randomly: one in which it functions normally (ON-period) and one in which it is disrupted (OFF-period). In this setting, we seek the value of disruption information which enables the buyer to place "disruption orders" at the beginning of OFF-periods. Utilizing renewal theory, we derive the total expected cost and chara...
Value of supplier flexibility and initial shelf life information in an EOQ environment,
Bayındır, Zeynep Pelin; Bakal, İsmail Serdar (null; 2018-07-07)
We consider an infinite horizon, continuous review inventory modelwith deterministic stationary demand where the shelf life of the itemsis uncertain. The initial life times of the incoming items from the supplieris a discrete random variable. When the age of the items reachesthe initial shelf-life, a quality control test for which the outcome israndom is applied. According to the result of this test, it is possibleto use the items to satisfy demand for an additional time period. Inthis environment, our obje...
Analysis of a deterministic demand production/inventory system under nonstationary supply uncertainty
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...
Use of a priori information in estimating tissue resistivities-application to measured data
Baysal, U; Eyüboğlu, Behçet Murat (IOP Publishing, 1999-07-01)
A statistically constrained minimum mean squares error estimator (MiMSEE) has been shown to be useful in estimating internal resistivity distribution by the use of simulated data. In this study, the performance of the MiMSEE algorithm is tested by using measured data from resistor phantoms. The MiMSEE uses a priori information on body geometry, electrode position, statistical properties of tissue resistivities, instrumentation noise and linearization error to calculate the optimum inverse matrix which maps ...
Signaling Games for Log-Concave Distributions: Number of Bins and Properties of Equilibria
Kazikli, Ertan; Sarıtaş, Serkan; GEZİCİ, Sinan; Linder, Tamas; Yuksel, Serdar (2022-03-01)
We investigate the equilibrium behavior for the decentralized cheap talk problem for real random variables and quadratic cost criteria in which an encoder and a decoder have misaligned objective functions. In prior work, it has been shown that the number of bins in any equilibrium has to be countable, generalizing a classical result due to Crawford and Sobel who considered sources with density supported on [0, 1]. In this paper, we first refine this result in the context of log-concave sources. For sources ...
Citation Formats
İ. S. Bakal and Z. P. Bayındır, “Value of Disruption Information in an EOQ Environment,” 2014, Accessed: 00, 2021. [Online]. Available: