Logistics, Volume 9, Issue 4
2025 December - 44 articles
Cover Story: Modern supply chains face volatile risks characterized by unpredictable, non-exponential durations. Traditional models often fail to capture this complexity. This study bridges the gap by modeling an inventory system as a piecewise-deterministic Markov process (PDMP) subject to phase-type disruptions and random yield. We rigorously prove that a simple, state-dependent base stock policy remains optimal under these complex conditions. By establishing the value function’s convexity, the paper demonstrates that intuitive threshold-based controls are robust. Numerical experiments show that ignoring disruption variability can increase costs by over 12%, highlighting the critical importance of modeling the variance of supply outages rather than just their average duration. View this paper - Issues are regarded as officially published after their release is announced to the table of contents alert mailing list .
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