On Optimal Inventory Model for Obsolescence Perishable Products under Unpermitted-Stockout

2011 ◽  
Vol 201-203 ◽  
pp. 1292-1295
Author(s):  
Xiao Liang Xie
Keyword(s):  
Optimal Solution ◽  
Inventory Model ◽  
Economic Order Quantity ◽  
Inventory Level ◽  
Order Quantity ◽  
Short Life ◽  
Numerical Examples ◽  
Fast Change ◽  
Demand Rate ◽  
Long Life

With the advancement of science and technology and the fast change of buyer requirements, the short-life products have been shortened at large, some formerly long-life products gradually turn to value deterioration products. The ratio of value deterioration products to modern products is getting higher and higher. This paper develops a deterministic economic order quantity EOQ inventory model, where the demand rate depends on the on-hand inventory when inventory level exceeds certain quantity , otherwise the demand rate is constant. The effects of obsolescence are taken into account, for it is related to the demand rate. The results are discussed through two numerical examples. A sensitivity analysis of the optimal solution with respect to parameters of the system is carried out.

scholarly journals An Inventory Model with Exponential Demand Rate, Finite Production Rate and Shortages

2009 ◽  
Vol 1 (3) ◽  
pp. 473-483 ◽  
Author(s):  
R. Begum ◽  
S. K. Sahu ◽  
R. R. Sahoo
Keyword(s):  
Sensitivity Analysis ◽  
Production Rate ◽  
Average Cost ◽  
Optimal Solution ◽  
Inventory Model ◽  
Optimal Model ◽  
Numerical Examples ◽  
Demand Rate ◽  
Total Average Cost ◽  
Total Average

The paper contains an order-level inventory model having the demand rate to be a function of time. Here shortages are allowed and completely backlogged. An optimal model is developed by considering exponential demand which minimizes the total average cost. Numerical examples are used to illustrate the developed model. Sensitivity analysis of the optimal solution with respect to major parameters is carried out.  Keywords: Inventory; EOQ; Finite production; Shortages; Exponential demand. © 2009 JSR Publications. ISSN: 2070-0237 (Print); 2070-0245 (Online). All rights reserved.  DOI: 10.3329/jsr.v1i3.2054              J. Sci. Res. 1 (3), 473-483 (2009)     

scholarly journals A Deterministic Inventory Model of Deteriorating Items with Two Rates of Production, Shortages, and Variable Production Cycle

2011 ◽  
Vol 2011 ◽  
pp. 1-16 ◽  
Author(s):  
Jhuma Bhowmick ◽  
G. P. Samanta
Keyword(s):  
Production Control ◽  
Continuous Production ◽  
Decision Rules ◽  
Optimal Solution ◽  
Inventory Model ◽  
Optimal Decision ◽  
Inventory Level ◽  
Production Cycle ◽  
Demand Rate ◽  
Variable Production

A Continuous production control inventory model is developed for a deteriorating item having shortages and variable production cycle. It is assumed that the production rate is changed to another at a time when the inventory level reaches a prefixed level and continued until the inventory level reaches the level . The demand rate is assumed to be constant, and the production cycle T is taken as variable. The production is started again at a time when the shortage level reaches a prefixed quantity . For this model, the total cost per unit time as a function of , , S, and T is derived. The optimal decision rules for , , S, and T are computed. The sensitivity of the optimal solution towards changes in the values of different system parameters is also studied. Results are illustrated by numerical examples.

scholarly journals Optimal pre-sale policy for deteriorating items

2022 ◽  
Vol 12 (1) ◽  
pp. 109
Author(s):  
Lianxia Zhao ◽  
Hui Qiao ◽  
Qi An
Keyword(s):  
Existence And Uniqueness ◽  
Numerical Experiments ◽  
Optimal Solution ◽  
Inventory Model ◽  
Economic Order Quantity ◽  
Optimal Pricing ◽  
Order Quantity ◽  
Stock Level ◽  
Pricing Decisions ◽  
Theoretical Results

<p style='text-indent:20px;'>Pre-sale policy is a frequently-used sales approach for deteriorating products, e.g, fruits, vegetables, seafood, etc. In this paper, we consider an EOQ inventory model under pre-sale policy for deteriorating products, in which the demand of pre-sale period depends on price and pre-sale horizon, and the demand of spot-sale period depends on the price and stock level. Optimal pricing decisions and economic order quantity are also provided. We compare pre-sale model with a benchmark inventory model in which all the products are sold in spot-sale period. Theoretical results are derived to show the existence and uniqueness of the optimal solution. Numerical experiments are carried out to to illustrate the theoretical results. And sensitivity analysis is conducted to identify conditions under which the pre-sale policy is better off than the spot-sale only policy.</p>

scholarly journals Integrated inventory model involving quality improvement investment and advance-cash-credit payments

2021 ◽  
Author(s):  
Chih-Te Yang ◽  
Chien-Hsiu Huang ◽  
Liang-Yuh Ouyang
Keyword(s):  
Optimal Solution ◽  
Inventory Model ◽  
Decision Makers ◽  
Optimal Solutions ◽  
Order Quantity ◽  
Defective Items ◽  
Numerical Examples ◽  
Proposed Model ◽  
Production Inventory ◽  
Total Profit

This paper investigates the effects of investment and inspection policies on an integrated production–inventory model involving defective items and upstream advance-cash-credit payment provided by the supplier. In this model, retailers offer customers a downstream credit period. Furthermore, the defective rate of the item can be improved through capital co-investment by the supplier and retailer. The objective of this study was to determine the optimal shipping quantity, order quantity, and investment alternatives for maximizing the supply chain's joint total profit per unit time. An algorithm was developed to obtain the optimal solution for the proposed problem. Several numerical examples are used to demonstrate the proposed model and analyze the effects of parameters changes on the optimal solutions. Finally, management implications for relevant decision makers are obtained from the numerical examples.

Inventory Model for the Batch Processing of Defective Products in Manufacturing and Remanufacturing

2013 ◽  
Vol 756-759 ◽  
pp. 4604-4611 ◽  
Author(s):  
Chi Chung Lin ◽  
Chwen Tzeng Su
Keyword(s):  
New Products ◽  
Batch Processing ◽  
Inventory Model ◽  
Rate Of Return ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Inventory Level ◽  
Order Quantity ◽  
Product Returns ◽  
Optimal Inventory Level

This study focuses on simple stationary demand satisfied by the remanufacturing of products and the manufacture of new products. Further, we presented how to use batch processing to reduce defective products in the remanufacturing and the manufacturing inventory. In this paper, we obtain the economic order quantity of new products and the optimal inventory level of products that have been remanufactured as well as the appropriate return rate for the economic order quantity and the economic remanufacturing quantity. We analyze an inventory system with unit product returns and demands wherein manufacturing is the cheaper alternative to remanufacturing. However, because demand exceeds the rate of return of defective products, remanufacturing of products is also required.

scholarly journals Inventory models with stock - and price-dependent demand for deteriotating items based on limited space

2022 ◽  
Vol 12 (1) ◽  
pp. 0-0
Keyword(s):  
Optimal Solution ◽  
Selling Price ◽  
Order Quantity ◽  
Inventory Models ◽  
Stock Level ◽  
Numerical Examples ◽  
Eoq Model ◽  
Eoq Models ◽  
Demand Rate ◽  
Dependent Demand

This paper deals with the problem of determining the optimal selling price and order quantity simultaneously under EOQ model for deteriorating items. It is assumed that the demand rate depends not only on the on-display stock level but also the selling price per unit, as well as the amount of shelf/display space is limited. We formulate two types of mathematical models to manifest the extended EOQ models for maximizing profits and derive the algorithms to find the optimal solution. Numerical examples are presented to illustrate the models developed and sensitivity analysis is reported.

scholarly journals An inventory model for deteriorating items under the condition of permissible delay in payments

2002 ◽  
Vol 12 (1) ◽  
pp. 73-84 ◽  
Author(s):  
Horng-Jinh Chang ◽  
Chung-Yuan Dye ◽  
Bor-Ren Chuang
Keyword(s):  
Real World ◽  
Inventory Model ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity ◽  
Permissible Delay In Payments ◽  
Credit Period ◽  
Numerical Examples ◽  
Eoq Models ◽  
Delay In Payments

In economic order quantity (EOQ) models, it is often assumed that the payment of an order is made on the receipt of items by the inventory system. However, such an assumption is not quite practical in the real world. Under most market behaviors, it can be easily found that a vendor provides a credit period for buyers to stimulate demand. In this paper, a varying rate of determination and the condition of permissible delay in payments used in conjunction with the economic order quantity model are the focus of discussion. Numerical examples are presented to illustrate the proposed models.

scholarly journals An Inventory Model under Trapezoidal Type Demand, Weibull-Distributed Deterioration, and Partial Backlogging

2014 ◽  
Vol 2014 ◽  
pp. 1-10 ◽  
Author(s):  
Lianxia Zhao
Keyword(s):  
Sensitivity Analysis ◽  
Waiting Time ◽  
Optimal Solution ◽  
Inventory Model ◽  
Partial Backlogging ◽  
Inventory Models ◽  
Numerical Examples ◽  
Replenishment Policy ◽  
Demand Rate ◽  
Theoretical Results

This paper studies an inventory model for Weibull-distributed deterioration items with trapezoidal type demand rate, in which shortages are allowed and partially backlogging depends on the waiting time for the next replenishment. The inventory models starting with no shortage is are to be discussed, and an optimal inventory replenishment policy of the model is proposed. Finally, numerical examples are provided to illustrate the theoretical results, and a sensitivity analysis of the major parameters with respect to the optimal solution is also carried out.

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