| Article ID: | iaor2009820 |
| Country: | Japan |
| Volume: | 51 |
| Issue: | 3 |
| Start Page Number: | 213 |
| End Page Number: | 224 |
| Publication Date: | Sep 2008 |
| Journal: | Journal of the Operations Research Society of Japan |
| Authors: | Chu Peter, Deng Peter Shaohua, Lin Robert Huang-ling, Hung Chih-Young, Chang Jason, Chao Henry, Jung Sung-Te, Lin Jennifer Shu-Jen |
This paper discusses the inventory replenishment policy over an infinite planning horizon with a negative exponential lead time crashing cost, taking time value into account. Our work is based on the paper of Ben-Daya and Raouf that has been cited 65 times. We extend their model to incorporate the time value of money and then find the criterion to decide the optimal solution. Numerical examples illustrate our findings to demonstrate that we provide an easy and efficient procedure to find the optimal solution.