Periodic review integrated inventory model with controllable lead time and setup cost in the presence of a service level constraint

2020 ◽  
Vol 26 (6) ◽  
pp. 478
Author(s):  
Fu Huang ◽  
Huaming Song
Keyword(s):  
Lead Time ◽  
Service Level ◽  
Inventory Model ◽  
Periodic Review ◽  
Setup Cost ◽  
Integrated Inventory Model ◽  
Controllable Lead Time ◽  
Integrated Inventory

An integrated inventory model involving discrete setup cost reduction, variable safety factor, selling price dependent demand, and investment

2019 ◽  
Vol 53 (1) ◽  
pp. 39-57 ◽  
Author(s):  
Bikash Koli Dey ◽  
Biswajit Sarkar ◽  
Mitali Sarkar ◽  
Sarla Pareek
Keyword(s):  
Safety Factor ◽  
Cost Reduction ◽  
Lead Time ◽  
Integrated Model ◽  
Inventory Model ◽  
Selling Price ◽  
Setup Cost ◽  
Integrated Inventory Model ◽  
Integrated Inventory ◽  
Setup Cost Reduction

This paper develops a sustainable integrated inventory model for maximizing profit with a controllable lead time, discrete setup cost reduction, and consideration of environmental issues. Contrary to the available literature, this paper considers a discrete setup cost for the vendor, thus making the integrated model sustainable. The customer’s demand is assumed to be selling-price dependent to increase the number of sales, and the lead time demand follows a Poisson distribution. The integrated model is used to optimized the total shipment number, volume of shipments, safety factor, investments, selling-price, and probability of moving between the “in-control” to “out-of-control” states. An algorithm is developed to obtain the numerical results. Numerical examples and sensitivity analyses are given to illustrate the model.

Sign in / Sign up

Export Citation Format

Share Document