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An EPQ model with partial backorders considering two backordering costs

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  • Wee, Hui-Ming
  • Huang, Yen-Deng
  • Wang, Wan-Tsu
  • Cheng, Yung-Lung

Abstract

We propose an EPQ model with partial backorders considering linear and fixed backordering costs. Time intervals rather than ordering size and backordering level are used as decision variables to derive the closed-form optimal solution. Our approach analyzes different optimal inventory policies and decides whether shortage period should be scheduled. In addition, a critical backordering rate is derived to determine the feasible optimal solution. The numerical example is provided to illustrate the solution procedure.

Suggested Citation

  • Wee, Hui-Ming & Huang, Yen-Deng & Wang, Wan-Tsu & Cheng, Yung-Lung, 2014. "An EPQ model with partial backorders considering two backordering costs," Applied Mathematics and Computation, Elsevier, vol. 232(C), pages 898-907.
    • Handle: RePEc:eee:apmaco:v:232:y:2014:i:c:p:898-907
    DOI: 10.1016/j.amc.2014.01.106
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    1. Pentico, David W. & Drake, Matthew J. & Toews, Carl, 2009. "The deterministic EPQ with partial backordering: A new approach," Omega, Elsevier, vol. 37(3), pages 624-636, June.
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    8. Sarkar, Biswajit & Sarkar, Sumon, 2013. "An improved inventory model with partial backlogging, time varying deterioration and stock-dependent demand," Economic Modelling, Elsevier, vol. 30(C), pages 924-932.
    9. Zhang, Ren-qian, 2009. "A note on the deterministic EPQ with partial backordering," Omega, Elsevier, vol. 37(5), pages 1036-1038, October.
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    13. Biswajit Sarkar & Shib Sankar Sana & Kripasindhu Chaudhuri, 2011. "An economic production quantity model with stochastic demand in an imperfect production system," International Journal of Services and Operations Management, Inderscience Enterprises Ltd, vol. 9(3), pages 259-283.
    14. Zhang, Ren-qian & Kaku, Ikou & Xiao, Yi-yong, 2011. "Deterministic EOQ with partial backordering and correlated demand caused by cross-selling," European Journal of Operational Research, Elsevier, vol. 210(3), pages 537-551, May.
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    Cited by:

    1. Amalendu Singha Mahapatra & Hardik N Soni & Maheswar Singha Mahapatra & Biswajit Sarkar & Sanat Majumder, 2021. "A Continuous Review Production-Inventory System with a Variable Preparation Time in a Fuzzy Random Environment," Mathematics, MDPI, vol. 9(7), pages 1-27, March.
    2. San-José, L.A. & Sicilia, J. & García-Laguna, J., 2015. "Analysis of an EOQ inventory model with partial backordering and non-linear unit holding cost," Omega, Elsevier, vol. 54(C), pages 147-157.
    3. Sudip Adak & G. S. Mahapatra, 2022. "Effect of reliability on multi-item inventory system with shortages and partial backlog incorporating time dependent demand and deterioration," Annals of Operations Research, Springer, vol. 315(2), pages 1551-1571, August.
    4. Yann Mey Yee & Lilian Sy & Kryzia Lomibao & Josephine Dela Cruz German & Hui-Ming Wee, 2023. "Sustainable Economic Production Quantity Model Considering Greenhouse Gas and Wastewater Emissions," Sustainability, MDPI, vol. 15(4), pages 1-30, February.
    5. Hossein Salehi & Ata Allah Taleizadeh & Reza Tavakkoli-Moghaddam, 2016. "An EOQ model with random disruption and partial backordering," International Journal of Production Research, Taylor & Francis Journals, vol. 54(9), pages 2600-2609, May.
    6. Shayan Tavakoli & Ata Allah Taleizadeh, 2017. "An EOQ model for decaying item with full advanced payment and conditional discount," Annals of Operations Research, Springer, vol. 259(1), pages 415-436, December.
    7. Biswajit Sarkar & Sharmila Saren & Mitali Sarkar & Yong Won Seo, 2016. "A Stackelberg Game Approach in an Integrated Inventory Model with Carbon-Emission and Setup Cost Reduction," Sustainability, MDPI, vol. 8(12), pages 1-23, December.
    8. Dharmendra Yadav & Umesh Chand & Ruchi Goel & Biswajit Sarkar, 2023. "Smart Production System with Random Imperfect Process, Partial Backordering, and Deterioration in an Inflationary Environment," Mathematics, MDPI, vol. 11(2), pages 1-20, January.

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