Article ID: | iaor20012161 |
Country: | United Kingdom |
Volume: | 28 |
Issue: | 1 |
Start Page Number: | 67 |
End Page Number: | 83 |
Publication Date: | Jan 2001 |
Journal: | Computers and Operations Research |
Authors: | Chung Kun-Jen, Lin Chuan-Neng |
Keywords: | deteriorating items |
This paper follows the discounted cash flow approach to investigate inventory replenishment problem for deteriorating items taking account of time value of money over a fixed planning horizon. We develop models and optimal solutions with complete backlogging and without backlogging and prove that the total variable cost is convex. The results are discussed through numerical examples. Sensitivity analysis of the optimal solution with respect to the parameters of the system is carried out.