Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
483125 | European Journal of Operational Research | 2006 | 12 Pages |
Abstract
This paper derives an inventory model for deteriorating items with stock-dependent consumption rate and shortages under inflation and time discounting over a finite planning horizon. We show that the total cost function is convex. With the convexity, a simple solution algorithm is presented to determine the optimal order quantity and the optimal interval of the total cost function. The results are discussed with a numerical example and particular cases of the model are discussed in brief. A sensitivity analysis of the optimal solution with respect to the parameters of the system is carried out.
Related Topics
Physical Sciences and Engineering
Computer Science
Computer Science (General)
Authors
Kuo-Lung Hou,