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Optimal policy for an inventory system with power demand, backlogged shortages and production rate proportional to demand rate

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  • Sicilia, Joaquín
  • González-De-la-Rosa, Manuel
  • Febles-Acosta, Jaime
  • Alcaide-López-de-Pablo, David

Abstract

This article analyzes an inventory system for items with time-varying demand. The way by which demand occurs during the inventory cycle follows a power demand pattern. The production of items allows to add stock in the inventory during a replenishment period. The production rate is proportional to demand rate. Shortages are allowed and completely backlogged. Holding cost, shortage cost and order cost are the costs considered in the inventory model. The aim consists of the minimization of the total cost per inventory cycle. An efficient approach is developed to obtain the optimal scheduling period and the optimal reorder point. In addition, the economic lot size and the minimum cost of the inventory management is determined. Some numerical examples are presented for illustrating the proposed inventory model.

Suggested Citation

  • Sicilia, Joaquín & González-De-la-Rosa, Manuel & Febles-Acosta, Jaime & Alcaide-López-de-Pablo, David, 2014. "Optimal policy for an inventory system with power demand, backlogged shortages and production rate proportional to demand rate," International Journal of Production Economics, Elsevier, vol. 155(C), pages 163-171.
    • Handle: RePEc:eee:proeco:v:155:y:2014:i:c:p:163-171
    DOI: 10.1016/j.ijpe.2013.11.020
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    References listed on IDEAS

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    Cited by:

    1. San-José, Luis A. & Sicilia, Joaquín & Cárdenas-Barrón, Leopoldo Eduardo & González-de-la-Rosa, Manuel, 2024. "A sustainable inventory model for deteriorating items with power demand and full backlogging under a carbon emission tax," International Journal of Production Economics, Elsevier, vol. 268(C).
    2. Jafari, L. & Makis, V., 2015. "Joint optimal lot sizing and preventive maintenance policy for a production facility subject to condition monitoring," International Journal of Production Economics, Elsevier, vol. 169(C), pages 156-168.
    3. Khan, Md. Al-Amin & Cárdenas-Barrón, Leopoldo Eduardo & Treviño-Garza, Gerardo & Céspedes-Mota, Armando & Loera-Hernández, Imelda de Jesús & Smith, Neale R., 2024. "Effects of variable prepayment installments on pricing and inventory decisions with power demand pattern and non-linear holding cost under carbon cap-and-price regulation," Operations Research Perspectives, Elsevier, vol. 12(C).
    4. Maihami, Reza & Govindan, Kannan & Fattahi, Mohammad, 2019. "The inventory and pricing decisions in a three-echelon supply chain of deteriorating items under probabilistic environment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 131(C), pages 118-138.

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