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Two-warehouse partial backlogging inventory models with three-parameter Weibull distribution deterioration under inflation

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  • Yang, Hui-Ling

Abstract

In many inventory systems, the effects of deterioration of physical goods have drawn much attention of various researchers in recent years. The more the deterioration is, the more the order quantity would be. According to such consideration, taking the deterioration rate into account is necessary. Thus, in this paper, I develop the two-warehouse partial backlogging inventory model introduced in Yang (2006) to incorporate three-parameter Weibull deterioration distribution. The objective is to derive the optimal replenishment policy that minimizes the net present value of total relevant cost per unit time. Two alternative models are compared based on the minimum cost approach. The study shows that the optimal solution not only exists but also is unique. Model 2 is still less expensive to operate than Model 1 in the proposed model. Finally, some numerical examples and sensitivity analysis on parameters are made to validate the results of the proposed inventory system.

Suggested Citation

  • Yang, Hui-Ling, 2012. "Two-warehouse partial backlogging inventory models with three-parameter Weibull distribution deterioration under inflation," International Journal of Production Economics, Elsevier, vol. 138(1), pages 107-116.
    • Handle: RePEc:eee:proeco:v:138:y:2012:i:1:p:107-116
    DOI: 10.1016/j.ijpe.2012.03.007
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    References listed on IDEAS

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    1. Yang, Hui-Ling, 2006. "Two-warehouse partial backlogging inventory models for deteriorating items under inflation," International Journal of Production Economics, Elsevier, vol. 103(1), pages 362-370, September.
    2. Lo, Sh-Tyan & Wee, Hui-Ming & Huang, Wen-Chang, 2007. "An integrated production-inventory model with imperfect production processes and Weibull distribution deterioration under inflation," International Journal of Production Economics, Elsevier, vol. 106(1), pages 248-260, March.
    3. Goyal, S. K. & Giri, B. C., 2001. "Recent trends in modeling of deteriorating inventory," European Journal of Operational Research, Elsevier, vol. 134(1), pages 1-16, October.
    4. Skouri, K. & Konstantaras, I. & Papachristos, S. & Ganas, I., 2009. "Inventory models with ramp type demand rate, partial backlogging and Weibull deterioration rate," European Journal of Operational Research, Elsevier, vol. 192(1), pages 79-92, January.
    5. Lo, Sh-Tyan & Wee, Hui-Ming & Huang, Wen-Chang, 2007. "An integrated production-inventory model with imperfect production processes and Weibull distribution deterioration under inflation," International Journal of Production Economics, Elsevier, vol. 106(2), pages 493-505, April.
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    7. Md. Al-Amin Khan & Ali Akbar Shaikh & Gobinda Chandra Panda & Asoke Kumar Bhunia & Ioannis Konstantaras, 2020. "Non-instantaneous deterioration effect in ordering decisions for a two-warehouse inventory system under advance payment and backlogging," Annals of Operations Research, Springer, vol. 289(2), pages 243-275, June.
    8. Alamri, Adel A. & Syntetos, Aris A., 2018. "Beyond LIFO and FIFO: Exploring an Allocation-In-Fraction-Out (AIFO) policy in a two-warehouse inventory model," International Journal of Production Economics, Elsevier, vol. 206(C), pages 33-45.
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    11. Ghiami, Yousef & Beullens, Patrick, 2016. "Planning for shortages? Net Present Value analysis for a deteriorating item with partial backlogging," International Journal of Production Economics, Elsevier, vol. 178(C), pages 1-11.
    12. Tiwari, Sunil & Jaggi, Chandra K. & Gupta, Mamta & Cárdenas-Barrón, Leopoldo Eduardo, 2018. "Optimal pricing and lot-sizing policy for supply chain system with deteriorating items under limited storage capacity," International Journal of Production Economics, Elsevier, vol. 200(C), pages 278-290.
    13. Pal, Shilpi & Mahapatra, G.S. & Samanta, G.P., 2015. "A production inventory model for deteriorating item with ramp type demand allowing inflation and shortages under fuzziness," Economic Modelling, Elsevier, vol. 46(C), pages 334-345.
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    18. Sicilia, Joaquín & González-De-la-Rosa, Manuel & Febles-Acosta, Jaime & Alcaide-López-de-Pablo, David, 2014. "An inventory model for deteriorating items with shortages and time-varying demand," International Journal of Production Economics, Elsevier, vol. 155(C), pages 155-162.
    19. Pal, Shilpi & Mahapatra, G.S. & Samanta, G.P., 2014. "An EPQ model of ramp type demand with Weibull deterioration under inflation and finite horizon in crisp and fuzzy environment," International Journal of Production Economics, Elsevier, vol. 156(C), pages 159-166.
    20. Pentico, David W. & Toews, Carl & Drake, Matthew J., 2015. "Approximating the EOQ with partial backordering at an exponential or rational rate by a constant or linearly changing rate," International Journal of Production Economics, Elsevier, vol. 162(C), pages 151-159.
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