Note on optimal ordering policy with different lead times and convex ordering costs

✍ Scribed by Ningxiong Xu

• Publisher: John Wiley and Sons
• Year: 2010
• Tongue: English
• Weight: 104 KB
• Volume: 32
• Category: Article
• ISSN: 0143-2087
• DOI: 10.1002/oca.946

✦ Synopsis

Abstract

This note generalizes Fukuda's two‐alternate‐lead‐times model (1964) with linear ordering costs to the case where the ordering costs are convex. We use lattice programming to show the qualitative properties of an optimal ordering policy if the ordering costs are convex and to further characterize the structure of an optimal ordering policy if the ordering costs are convex and piecewise linear. Copyright © 2010 John Wiley & Sons, Ltd.