Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
9664101 | European Journal of Operational Research | 2005 | 9 Pages |
Abstract
This paper considers two popular inventory models: the continuous review and periodic review reorder-point, order-quantity, control systems. Specifically we present two procedures which determine optimal values for the two control parameters (i.e., reorder-point and order-quantity) when the holding-and-shortage costs are non-quasi-convex. This cost structure may arise when non-linear cost rate is considered, for instance when the shortage cost is the shadow cost of a service-level constraint. The algorithms based on a fractional programming method are intuitive and efficient, and as the holding-and-shortage cost functions become quasi-convex, they are compatible to existing algorithms.
Related Topics
Physical Sciences and Engineering
Computer Science
Computer Science (General)
Authors
Youhua Frank Chen,