Article ID: | iaor19911213 |
Country: | United States |
Volume: | 38 |
Issue: | 4 |
Start Page Number: | 189 |
End Page Number: | 195 |
Publication Date: | Jul 1990 |
Journal: | Operations Research |
Authors: | Rosenblatt Meir J., Rothblum Uriel G. |
In this paper, the authors study multi-item inventory systems under a single resource capacity constraint. In contrast to most previous approaches, they treat the capacity as a decision variable, and not as given data. This is consistent with many practical cases where additional capacities/resources can be acquired/rented at some cost/profit. Two solutions procedures are developed for deriving an optimal policy within the class of policies that has a fixed cycle for all items with phasing of orders within the cycle. These solution procedures can be applied to various types of cost functions, as illustrated by an example.