tailieunhanh - A demand independent inventory model

This paper is an extension of Deng et al. (2007) that was published in the European Journal of Operational Research. We have generalized their model from ramp type demand to arbitrary positive demand while theoretically discovering an important phenomenon: The optimal solution is actually independent of the demand as pointed out by Wou (2010), Hung (2011) and Lin (2011). | Yugoslav Journal of Operations Research 23 (2013), Number 1, 129-135 DOI: A DEMAND INDEPENDENT INVENTORY MODEL Jennifer LIN Department of Transportation Logistics & Marketing Management, Toko University, Taiwan, . jennifer1592001@ Henry CHAO, Peterson JULIAN Department of Traffic Science, Central Police University, Taiwan, . una051@; una211@ Received: January 2012 / Accepted: September 2012 Abstract: This paper is an extension of Deng et al. (2007) that was published in the European Journal of Operational Research. We have generalized their model from ramp type demand to arbitrary positive demand while theoretically discovering an important phenomenon: the optimal solution is actually independent of the demand as pointed out by Wou (2010), Hung (2011) and Lin (2011). We extend their inventory models in which the deteriorated rate is any non-negative function and backlog rate is inversely linearly related to the waiting time. Our findings will provide a new inventory system to help decision makers decide the optimal ordering quantity and replenishment policy. Keywords: Inventory model, Deteriorating item, Partially backlogged. MSC: 90B05. 1. INTRODUCTION This paper investigates an inventory model with stock at the beginning and shortages allowed, but then partially backlogged. In the entire time horizon, there is only one order placed at the beginning and backorders are filled at the end. This kind of inventory model was first proposed by Hill [4], and then further investigated by Mandal and Pal [11], Wu and Ouyang [15], and Deng et al. [3], Skouri et al. [10], in which the demand is ramp type demand. Moreover, we also improve inventory models of Wou [12], Yang et al. [19], Hung [5], and Lin [8] with a more general deterioration rate, backordered rate, and set up cost. Deng [2] improved Mandal and Pal [11] and Wu et al. J. Lin, H. Chao, and P. Julian / A Demand Independent Inventory .