We consider the problem of managing nonperishable inventory as a vendor in a grocer setting. To manage inventory effectively, we must meet the demand of our customers as closely as we can. Too much inventory results in holding costs and ties up a large amount of capital and too little inventory results in lost sales or substitution. It is typical in a retail setting for the vendor to have access to past ordering data, but this data is only representative of the demand when we have sufficient inventory. Otherwise, the demand exceeds the inventory on hand and we lose, in addition to the sale, the observation of the true demand. However, we get ahead of ourselves since the ability for the vendor to even know if there is an out-of-stock situation is questionable. This can be addressed through cooperation with the store and access to point of sale systems. The setting is further complicated by such things as the presence of multiple products, a backroom, and positive leadtimes. We conduct a survey on these topics as well as others pertaining to a vendortype situation such as periodic review, service level constraints, fixed order costs, and the joint replenishment problem.


In-Jae Kim

Committee Member

Galkande (Iresha) Premarathna

Committee Member

Kyung Lee

Date of Degree




Document Type



Master of Arts (MA)


Mathematics and Statistics


Science, Engineering and Technology

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