Optimal replenishment policy for perishable seasonal products in a season with ramp-type time dependent demand

Optimal replenishment policy for perishable seasonal products in a season with ramp-type time dependent demand

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Article ID: iaor2009816
Country: Netherlands
Volume: 54
Issue: 2
Start Page Number: 301
End Page Number: 314
Publication Date: Mar 2008
Journal: Computers & Industrial Engineering
Authors: , ,
Keywords: deteriorating items, seasonality
Abstract:

A single item order level inventory model for a seasonal product is discussed where the demand rate is represented by a ramp-type time dependent function. A constant fraction of on hand inventory deteriorates per unit time. Shortages are not allowed. The model is developed over a finite time horizon (time period of a season) to determine optimal replenishment policy by minimizing total system running cost of entire season. An algorithm is provided to find the solution of the problem. A numerical example is presented and sensitivity analysis of the model is carried out. The rationale for time dependent ramp-type demand is also discussed.

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