Deterministic inventory lot-size models under inflation with shortages and deterioration for fluctuating demand

✍ Scribed by Hui-Ling Yang; Jinn-Tsair Teng; Maw-Sheng Chern

• Publisher: John Wiley and Sons
• Year: 2001
• Tongue: English
• Weight: 164 KB
• Volume: 48
• Category: Article
• ISSN: 0894-069X
• DOI: 10.1002/1520-6750(200103)48:2<144::aid-nav3>3.0.co;2-8

✦ Synopsis

In this paper, we extend the inventory lot-size models to allow for inflation and fluctuating demand (which is more general than constant, increasing, decreasing, and log-concave demand patterns). We prove that the optimal replenishment schedule not only exists but is also unique. Furthermore, we show that the total cost associated with the inventory system is a convex function of the number of replenishments. Hence, the search for the optimal number of replenishments is simplified to finding a local minimum. Finally, several numerical examples are provided to illustrate the results.