This paper proposes a new methodology to solve partially observed inventory problems. Generally, these problems have infinitedimensional states that are conditional distribution of the inventory level. Our methodology involves linearizing the state transitions via unnormalized probabilities. It...

We analyze a supply chain consisting of a supplier and a retailer. The supplier's unit production cost, which characterizes his type, is only privately known to him. When trading with the retailer, the supplier demands a reservation profit that depends on his unit production cost. We model this...

This article analyzes a discrete time lost sales inventory system with partially observed demand and unobserved shrinkages which happen both before and after the demand realization. When the demand exceeds the remaining inventory, the unmet demand is lost and unobserved. This problem in general...

This paper proposes a new methodology to solve partially observed inventory problems. Generally, these problems have infinite dimensional states that are conditional distribution of the inventory level. Our methodology involves linearizing the state transitions via unnormalized probabilities. It...

This paper considers the case of partially observed demand in the context of a multi-period inventory problem with lost sales. Demand in a period is observed if it is less than the inventory level in that period and the leftover inventory is carried over to the next period. Otherwise, only the...

In many real-life contexts, inventory levels are only incompletely observed due to nonobservation of demand, discrepancies in transmitting sales data, transaction errors, spoilage, misplacement, or theft of inventory. We study a periodic review inventory system where the demand is not observed...

Information delays exist in an inventory system when it takes time to collect, process, validate, and transmit inventory/demand data. A general framework is developed in this paper to describe information flows in an inventory system with information delays. We characterize the suffcient...

Information delays exist when the most recent inventory information available to the Inventory Manager (IM) is dated. In other words, the IM observes only the inventory level that belongs to an earlier period. Such situations are not uncommon, and they arise when it takes a while to process the...

We develop a general filtering framework for the problem of estimating the state of a system whose dynamics is governed by a discrete-time Markov process. We describe applications to inventory control systems with partial observations. We introduce conditional distributions and unnormalized...