Article ID: | iaor199642 |
Country: | United Kingdom |
Volume: | 46 |
Issue: | 4 |
Start Page Number: | 521 |
End Page Number: | 527 |
Publication Date: | Apr 1995 |
Journal: | Journal of the Operational Research Society |
Authors: | Goyal Suresh K., Hariga Moncer A. |
This paper develops an iterative procedure for determining the optimal replenishment policy for an item having linear trend in demand. Shortages are permitted for the inventory item and can be backordered. This optimal procedure is easier to apply than an earlier solution method reported in inventory literature with linearly time-varying demand and shortages. Two examples are included to illustrate the iterative procedure.