Article ID: | iaor200295 |
Country: | United States |
Volume: | 31 |
Issue: | 3 |
Start Page Number: | 391 |
End Page Number: | 400 |
Publication Date: | Mar 2000 |
Journal: | International Journal of Systems Science |
Authors: | Lin C.H., Tan B., Lee W.C. |
Keywords: | economic order, deteriorating items |
The study explores the inventory replenishment policies for the cases with time-varying demand, linearly increasing deterioration rate, partial back-ordering, constant service level and equal replenishment intervals over a fixed planning horizon. Since it is difficult to solve the problem directly, we derive the upper bound of replenishment number for a specific planning horizon and find the solution of service level under a given number of replenishment. The optimal solutions of replenishment number and service level are then determined. Numerical examples and sensitivity analyses are also provided to illustrate the solution procedure.