Integrated Inventory Replenishment and Shipment Consolidation with Price Sensitive Demand

Format: On Campus
Number of Interns (Quota): 1
Duration of the Internship: 6 to 8 weeks (July/August)
Start Date: 30 June 2025
End Date: 30 August 2025
Application Deadline: 1 June 2025
Project Supervisor: Asst. Prof. Dr. Bo WEI
Project Title: Integrated Inventory Replenishment and Shipment Consolidation with Price Sensitive Demand.

This project aims to develop and analyze integrated operational and pricing strategies for a distribution warehouse operating under stochastic price-controlled demand. The warehouse faces fixed and linear transportation costs associated with both inbound inventory replenishment and outbound dispatch. To maximize profit and achieve efficiencies through economies of scale in transportation, a holistic approach is required, necessitating the joint optimization of pricing, dispatch schedules, and replenishment decisions over time. This project will focus on developing an analytical pricing model within an integrated inventory and shipment consolidation framework. We will employ a combination of analytical and simulation methods to compute and compare the profitability of various policy configurations. The results are of practical value in the context of the design and operation of an integrated framework for inventory-transportation systems.

The project will introduce students to stochastic modeling, optimization, and control within operations management. This will involve having them read relevant texts and articles, learn relevant models, and engage in simulations of stochastic service systems.

Requirements:

• Strong Interest in applied mathematics.
• Interest in learning how to apply probability, optimization, and simulations to real life.

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