A deteriorating inventory model with time-varying demand and shortage-dependent partial backlogging

A deteriorating inventory model with time-varying demand and shortage-dependent partial backlogging

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Article ID: iaor20083665
Country: Netherlands
Volume: 172
Issue: 2
Start Page Number: 417
End Page Number: 429
Publication Date: Jul 2006
Journal: European Journal of Operational Research
Authors: , ,
Keywords: inventory
Abstract:

Recently, Chu et al. presented the necessary condition of the existence and uniqueness of the optimal solution of Padmanabhan and Vrat. However, they included neither the purchase cost nor the cost of lost sales into the total cost. In this paper, we complement the shortcoming of their model by adding not only the cost of lost sales but also the non-constant purchase cost, and then extend their model from a constant demand function to any log-concave demand function. We also provide a simple solution procedure to find the optimal replenishment schedule. Further, we use a couple of numerical examples to illustrate the results and conclude with suggestions for future research.

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