A Note on a Replenishment Policy for an Inventory Model with Linear Trend in Demand and Shortages

The present paper deals with an alternative approach for finding the optimal number of replenishments and optimal replenishment times for a finite-horizon inventory problem with linearly increasing demand allowing shortages which are fully backlogged. The method is developed by assuming that success...

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Bibliographic Details
Published in:The Journal of the Operational Research Society 1992-10, Vol.43 (10), p.993-1001
Main Authors: Datta, Tapan Kumar, Pal, Ashis Kumar
Format: Article
Language:English
Subjects:
Applied sciences
Business and Management
Cost efficiency
Cost savings
Demand
Exact sciences and technology
Heuristic methods
Heuristics
Inventory
Inventory control, production control. Distribution
Inventory costing methods
Management
Mathematical models
Minimization of cost
Modeling
Operational research and scientific management
Operational research. Management science
Operations research
Operations Research/Decision Theory
Sensitivity analysis
Shortage
Shortages
Technical Note
Technical Notes
Theory
Total costs
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Description
Summary:The present paper deals with an alternative approach for finding the optimal number of replenishments and optimal replenishment times for a finite-horizon inventory problem with linearly increasing demand allowing shortages which are fully backlogged. The method is developed by assuming that successive replenishment cycle lengths are in arithmetic progression. The corresponding results in the absence of shortage are also derived and finally some numerical examples are presented and compared with the existing methods to test the accuracy and effectiveness of the method. A sensitivity analysis has also been presented to study the effect of changes in the system parameters on the optimal cost.
ISSN:0160-5682
1476-9360
DOI:10.1057/jors.1992.150