Article ID: | iaor20082116 |
Country: | Netherlands |
Volume: | 52 |
Issue: | 4 |
Start Page Number: | 448 |
End Page Number: | 458 |
Publication Date: | May 2007 |
Journal: | Computers & Industrial Engineering |
Authors: | Wee Hui Ming, Hsu Ping-Hui, Teng Hui-Ming |
Keywords: | deteriorating items, seasonality |
The ordering policy for the retailers and the suppliers is a function of deterioration, product expiration date, the supplier’s uncertain lead time, available capital constraint and the retailer’s seasonal pattern demand. We develop a deteriorating inventory replenishment model of the system and present an algorithm to derive the retailer’s optimal replenishment cycle, shortage period, order quantity and the supplier’s managing cost. Numerical example and sensitivity analysis are given to illustrate the model.