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Optimal replenishment policies for non-instantaneous deteriorating items with stock-dependent demand

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  • Chang, Chun-Tao
  • Teng, Jinn-Tsair
  • Goyal, Suresh Kumar

Abstract

Wu et al. [2006. An optimal replenishment policy for non-instantaneous deteriorating items with stock-dependent demand and partial backlogging. International Journal of Production Economics 101, 369-384] established an inventory model for non-instantaneous deteriorating items with stock-dependent demand, and obtained the optimal replenishment policy. In this paper, we first amend Wu et al.'s model by changing the objective to maximizing the total profit. Secondly, we set a maximum inventory level in the model to reflect the facts that most retail outlets have limited shelf space. Thirdly, we relax the restriction of zero ending inventory when shortages are not desirable. We then establish the theoretical results and provide an algorithm to find the optimal solution. Finally, we present some numerical examples to illustrate the results.

Suggested Citation

  • Chang, Chun-Tao & Teng, Jinn-Tsair & Goyal, Suresh Kumar, 2010. "Optimal replenishment policies for non-instantaneous deteriorating items with stock-dependent demand," International Journal of Production Economics, Elsevier, vol. 123(1), pages 62-68, January.
    • Handle: RePEc:eee:proeco:v:123:y:2010:i:1:p:62-68
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    References listed on IDEAS

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    1. Zhou, Yong-Wu & Min, Jie & Goyal, Suresh K., 2008. "Supply-chain coordination under an inventory-level-dependent demand rate," International Journal of Production Economics, Elsevier, vol. 113(2), pages 518-527, June.
    2. Wu, Kun-Shan & Ouyang, Liang-Yuh & Yang, Chih-Te, 2006. "An optimal replenishment policy for non-instantaneous deteriorating items with stock-dependent demand and partial backlogging," International Journal of Production Economics, Elsevier, vol. 101(2), pages 369-384, June.
    3. Padmanabhan, G. & Vrat, Prem, 1995. "EOQ models for perishable items under stock dependent selling rate," European Journal of Operational Research, Elsevier, vol. 86(2), pages 281-292, October.
    4. Dye, Chung-Yuan & Ouyang, Liang-Yuh, 2005. "An EOQ model for perishable items under stock-dependent selling rate and time-dependent partial backlogging," European Journal of Operational Research, Elsevier, vol. 163(3), pages 776-783, June.
    5. Chang, Chun-Tao & Goyal, Suresh Kumar & Teng, Jinn-Tsair, 2006. "On "An EOQ model for perishable items under stock-dependent selling rate and time-dependent partial backlogging" by Dye and Ouyang," European Journal of Operational Research, Elsevier, vol. 174(2), pages 923-929, October.
    6. Chun-Tao Chang, 2004. "Inventory Models With Stock-Dependent Demand And Nonlinear Holding Costs For Deteriorating Items," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 21(04), pages 435-446.
    7. Pal, S. & Goswami, A. & Chaudhuri, K. S., 1993. "A deterministic inventory model for deteriorating items with stock-dependent demand rate," International Journal of Production Economics, Elsevier, vol. 32(3), pages 291-299, November.
    8. Lodree Jr., Emmett J. & Uzochukwu, Benedict M., 2008. "Production planning for a deteriorating item with stochastic demand and consumer choice," International Journal of Production Economics, Elsevier, vol. 116(2), pages 219-232, December.
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