Lot sizing for a product subject to obsolescence or perishability

Lot sizing for a product subject to obsolescence or perishability

0.00 Avg rating0 Votes
Article ID: iaor1998139
Country: Netherlands
Volume: 75
Issue: 2
Start Page Number: 287
End Page Number: 295
Publication Date: Jun 1994
Journal: European Journal of Operational Research
Authors: ,
Keywords: programming: dynamic
Abstract:

The paper presents a stochastic dynamic programming model for determining the optimal ordering policy for a perishable or potentially obsolete product so as to satisfy known time-varying demand over a specified planning horizon. We have considered random left time perishability where, at the end of each discrete period, the total remaining inventory either becomes worthless or remains usable for at least the next period. Two approximate solution methods are shown. The optimal and heuristic methods are compared on a large set of test problems and their performance as a function of various problem parameters is analyzed.

Reviews

Required fields are marked *. Your email address will not be published.