Article ID: | iaor20003289 |
Country: | United Kingdom |
Volume: | 50 |
Issue: | 11 |
Start Page Number: | 1176 |
End Page Number: | 1182 |
Publication Date: | Nov 1999 |
Journal: | Journal of the Operational Research Society |
Authors: | Chang Horng-Jinh, Dye C.-Y. |
Keywords: | economic order |
In the classical economic order quantity model, it is often assumed that the shortages are either completely backlogged or completely lost. However, in some inventory systems, it is more reasonable to assume that the backlogging rate is dependent on the length of the waiting time for the next replenishment. The longer the waiting time is, the smaller the backlogging rate would be. In this paper, we focus on the effect of the backlogging rate on the economic order quantity decision. Numerical examples are presented to illustrate the model.