In a globalized business network, the supply chain has become increasingly complex, dynamic, and pivotal to creation of competitive advantages. The OM faculty examines improvement strategies for supply chain and inventory management. Examples of faculty research include inventory management models, supply chain coordination and mechanism design, transportation and urban logistics, production planning and operational flexibility, pricing and revenue management in a supply chain, and retail operations.
One of our key projects is on understanding inventory rationing in spare parts supply chain. In after-market, spares parts supply chain, demand for the same parts can arise from different end-use (or demand) classes that require different service levels or fill rates. In order manage the inventory levels and service levels, inventory rationing policies are adopted wherein a particular demand is fulfilled immediately only if the demand belongs a certain class and the inventory levels are sufficient. Our research attempts to develop improved rationing policies for systems involving multiple end-use or demand classes.