IDEAS home Printed from https://ideas.repec.org/a/mth/ber888/v7y2017i1p128-138.html
   My bibliography  Save this article

The Dynamic Programming Models for Inventory Control System with Time-varying Demand

Author

Listed:
  • Truong Hong Trinh

Abstract

The concept of dependent and independent demand is important in inventory planning and replenishment that also requires different inventory control solutions. This paper employs the dynamic programming technique for inventory control system with time-varying demand to propose the replenishment policy in terms of the economic order quantity, number of replenishment, and reorder point where total inventory cost is minimized. The study result indicates that the dynamic programming models outperform the traditional lot sizing models in terms of total inventory cost. Moreover, the paper creates opportunities for extending further researches on dynamic inventory related to capacity constraints and uncertainty conditions of demand, yield, lead time.

Suggested Citation

  • Truong Hong Trinh, 2017. "The Dynamic Programming Models for Inventory Control System with Time-varying Demand," Business and Economic Research, Macrothink Institute, vol. 7(1), pages 128-138, June.
    • Handle: RePEc:mth:ber888:v:7:y:2017:i:1:p:128-138
    as

    Download full text from publisher

    File URL: http://www.macrothink.org/journal/index.php/ber/article/view/10965/8765
    Download Restriction: no
    File URL: http://www.macrothink.org/journal/index.php/ber/article/view/10965
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Stefan Voß & David L. Woodruff, 2006. "Introduction to Computational Optimization Models for Production Planning in a Supply Chain," Springer Books, Springer, edition 0, number 978-3-540-29879-3, December.
    2. Harvey M. Wagner & Thomson M. Whitin, 1958. "Dynamic Version of the Economic Lot Size Model," Management Science, INFORMS, vol. 5(1), pages 89-96, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Julia Pahl & Stefan Voß & David Woodruff, 2007. "Production planning with load dependent lead times: an update of research," Annals of Operations Research, Springer, vol. 153(1), pages 297-345, September.
    2. Battini, Daria & Persona, Alessandro & Sgarbossa, Fabio, 2014. "A sustainable EOQ model: Theoretical formulation and applications," International Journal of Production Economics, Elsevier, vol. 149(C), pages 145-153.
    3. Wolosewicz, Cathy & Dauzère-Pérès, Stéphane & Aggoune, Riad, 2015. "A Lagrangian heuristic for an integrated lot-sizing and fixed scheduling problem," European Journal of Operational Research, Elsevier, vol. 244(1), pages 3-12.
    4. Charles, Mehdi & Dauzère-Pérès, Stéphane & Kedad-Sidhoum, Safia & Mazhoud, Issam, 2022. "Motivations and analysis of the capacitated lot-sizing problem with setup times and minimum and maximum ending inventories," European Journal of Operational Research, Elsevier, vol. 302(1), pages 203-220.
    5. Liu, Tieming, 2008. "Economic lot sizing problem with inventory bounds," European Journal of Operational Research, Elsevier, vol. 185(1), pages 204-215, February.
    6. Kaijie Zhu & Ulrich W. Thonemann, 2009. "Coordination of pricing and inventory control across products," Naval Research Logistics (NRL), John Wiley & Sons, vol. 56(2), pages 175-190, March.
    7. Chakrabarti, T. & Chaudhuri, K. S., 1997. "An EOQ model for deteriorating items with a linear trend in demand and shortages in all cycles," International Journal of Production Economics, Elsevier, vol. 49(3), pages 205-213, May.
    8. Qiu, Ruozhen & Sun, Minghe & Lim, Yun Fong, 2017. "Optimizing (s, S) policies for multi-period inventory models with demand distribution uncertainty: Robust dynamic programing approaches," European Journal of Operational Research, Elsevier, vol. 261(3), pages 880-892.
    9. van den Heuvel, Wilco & Gutiérrez, José Miguel & Hwang, Hark-Chin, 2011. "Note on "An efficient approach for solving the lot-sizing problem with time-varying storage capacities"," European Journal of Operational Research, Elsevier, vol. 213(2), pages 455-457, September.
    10. Stan van Hoesel & H. Edwin Romeijn & Dolores Romero Morales & Albert P. M. Wagelmans, 2005. "Integrated Lot Sizing in Serial Supply Chains with Production Capacities," Management Science, INFORMS, vol. 51(11), pages 1706-1719, November.
    11. Sana, S. & Goyal, S. K. & Chaudhuri, K. S., 2004. "A production-inventory model for a deteriorating item with trended demand and shortages," European Journal of Operational Research, Elsevier, vol. 157(2), pages 357-371, September.
    12. Toy, Ayhan Özgür & Berk, Emre, 2013. "Dynamic lot sizing for a warm/cold process: Heuristics and insights," International Journal of Production Economics, Elsevier, vol. 145(1), pages 53-66.
    13. Fan, Yingjie & Schwartz, Frank & Voß, Stefan, 2017. "Flexible supply chain planning based on variable transportation modes," International Journal of Production Economics, Elsevier, vol. 183(PC), pages 654-666.
    14. Tang, Lianhua & Li, Yantong & Bai, Danyu & Liu, Tao & Coelho, Leandro C., 2022. "Bi-objective optimization for a multi-period COVID-19 vaccination planning problem," Omega, Elsevier, vol. 110(C).
    15. Ge, Liping & Voß, Stefan, 2009. "ERP application in China: An overview," International Journal of Production Economics, Elsevier, vol. 122(1), pages 501-507, November.
    16. Melega, Gislaine Mara & de Araujo, Silvio Alexandre & Jans, Raf, 2018. "Classification and literature review of integrated lot-sizing and cutting stock problems," European Journal of Operational Research, Elsevier, vol. 271(1), pages 1-19.
    17. Fowler, John W. & Mönch, Lars, 2022. "A survey of scheduling with parallel batch (p-batch) processing," European Journal of Operational Research, Elsevier, vol. 298(1), pages 1-24.
    18. Schwartz, Jay D. & Rivera, Daniel E., 2010. "A process control approach to tactical inventory management in production-inventory systems," International Journal of Production Economics, Elsevier, vol. 125(1), pages 111-124, May.
    19. Fleischmann, Moritz & Bloemhof-Ruwaard, Jacqueline M. & Dekker, Rommert & van der Laan, Erwin & van Nunen, Jo A. E. E. & Van Wassenhove, Luk N., 1997. "Quantitative models for reverse logistics: A review," European Journal of Operational Research, Elsevier, vol. 103(1), pages 1-17, November.
    20. Janssen, Larissa & Diabat, Ali & Sauer, Jürgen & Herrmann, Frank, 2018. "A stochastic micro-periodic age-based inventory replenishment policy for perishable goods," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 118(C), pages 445-465.

    More about this item

    Keywords

    Dynamic inventory; Lot sizing; Order point system; Material requirement planning; Dynamic programming model; Inventory control system;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mth:ber888:v:7:y:2017:i:1:p:128-138. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Technical Support Office (email available below). General contact details of provider: http://www.macrothink.org/journal/index.php/ber .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.