Exponentially decaying inventory with partial back-ordering

✍ Scribed by Hui-Ming Wee; H. Murat Mercan

• Publisher: John Wiley and Sons
• Year: 1999
• Tongue: English
• Weight: 79 KB
• Volume: 20
• Category: Article
• ISSN: 0143-2087
• DOI: 10.1002/(sici)1099-1514(199901/02)20:1<43::aid-oca643>3.0.co;2-8

✦ Synopsis

Most of the research in decaying inventory models considers either complete back-ordering or complete lost sale. The analysis on partial back-ordering has received relatively little attention. In this study, a partial back-ordered inventory model for an item which deteriorates exponentially is developed. It is demonstrated that models with complete back-ordering and complete lost sales are special cases of the general model. Also, a lower bound on the back-ordered ratio is obtained to ensure convexity of the total cost function.

A numerical example to illustrate the theory is provided.