IDEAS home Printed from https://ideas.repec.org/a/wly/navres/v48y2001i2p144-158.html
   My bibliography  Save this article

Deterministic inventory lot‐size models under inflation with shortages and deterioration for fluctuating demand

Author

Listed:
  • Hui‐Ling Yang
  • Jinn‐Tsair Teng
  • Maw‐Sheng Chern

Abstract

In this paper, we extend the inventory lot‐size models to allow for inflation and fluctuating demand (which is more general than constant, increasing, decreasing, and log‐concave demand patterns). We prove that the optimal replenishment schedule not only exists but is also unique. Furthermore, we show that the total cost associated with the inventory system is a convex function of the number of replenishments. Hence, the search for the optimal number of replenishments is simplified to finding a local minimum. Finally, several numerical examples are provided to illustrate the results. © 2001 John Wiley & Sons, Inc. Naval Research Logistics 48: 144–158, 2001

Suggested Citation

  • Hui‐Ling Yang & Jinn‐Tsair Teng & Maw‐Sheng Chern, 2001. "Deterministic inventory lot‐size models under inflation with shortages and deterioration for fluctuating demand," Naval Research Logistics (NRL), John Wiley & Sons, vol. 48(2), pages 144-158, March.
    • Handle: RePEc:wly:navres:v:48:y:2001:i:2:p:144-158
    DOI: 10.1002/1520-6750(200103)48:23.0.CO;2-8
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/1520-6750(200103)48:23.0.CO;2-8
    Download Restriction: no
    File URL: https://libkey.io/10.1002/1520-6750(200103)48:23.0.CO;2-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ray, J. & Chaudhuri, K. S., 1997. "An EOQ model with stock-dependent demand, shortage, inflation and time discounting," International Journal of Production Economics, Elsevier, vol. 53(2), pages 171-180, November.
    2. Jinn‐Tsair Teng & Maw‐Sheng Chern & Hui‐Ling Yang, 1997. "An optimal recursive method for various inventory replenishment models with increasing demand and shortages," Naval Research Logistics (NRL), John Wiley & Sons, vol. 44(8), pages 791-806, December.
    3. Upendra Dave, 1989. "A deterministic lot‐size inventory model with shortages and a linear trend in demand," Naval Research Logistics (NRL), John Wiley & Sons, vol. 36(4), pages 507-514, August.
    4. Ram B. Misra, 1979. "A note on optimal inventory management under inflation," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 26(1), pages 161-165, March.
    5. Datta, T. K. & Pal, A. K., 1991. "Effects of inflation and time-value of money on an inventory model with linear time-dependent demand rate and shortages," European Journal of Operational Research, Elsevier, vol. 52(3), pages 326-333, June.
    6. Hariga, Moncer A., 1995. "Effects of inflation and time-value of money on an inventory model with time-dependent demand rate and shortages," European Journal of Operational Research, Elsevier, vol. 81(3), pages 512-520, March.
    7. Ram Rachamadugu & Ranga Ramasesh, 1994. "Suboptimality of equal lot sizes for finite‐horizon problems," Naval Research Logistics (NRL), John Wiley & Sons, vol. 41(7), pages 1019-1027, December.
    8. Lineu C. Barbosa & Moshe Friedman, 1978. "Deterministic Inventory Lot Size Models--A General Root Law," Management Science, INFORMS, vol. 24(8), pages 819-826, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hongjun Peng & Tao Pang & Fuliang Cao & Juan Zhao, 2018. "A Mutual Subsidy Mechanism for a Seasonal Product Supply Chain Channel Under Double Price Regulation," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 35(06), pages 1-26, December.
    2. K. Skouri & I. Konstantaras & S. Manna & K. Chaudhuri, 2011. "Inventory models with ramp type demand rate, time dependent deterioration rate, unit production cost and shortages," Annals of Operations Research, Springer, vol. 191(1), pages 73-95, November.

    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. M. Palanivel & R. Uthayakumar, 2015. "Finite horizon EOQ model for non-instantaneous deteriorating items with price and advertisement dependent demand and partial backlogging under inflation," International Journal of Systems Science, Taylor & Francis Journals, vol. 46(10), pages 1762-1773, July.
    2. Hou, Kuo-Lung, 2006. "An inventory model for deteriorating items with stock-dependent consumption rate and shortages under inflation and time discounting," European Journal of Operational Research, Elsevier, vol. 168(2), pages 463-474, January.
    3. Debasis Das & Arindam Roy & Samarjit Kar, 2015. "A multi-warehouse partial backlogging inventory model for deteriorating items under inflation when a delay in payment is permissible," Annals of Operations Research, Springer, vol. 226(1), pages 133-162, March.
    4. Nita H. Shah & Chetansinh R. Vaghela, 2017. "Economic order quantity for deteriorating items under inflation with time and advertisement dependent demand," OPSEARCH, Springer;Operational Research Society of India, vol. 54(1), pages 168-180, March.
    5. M. Palanivel & R. Uthayakumar, 2016. "Two-warehouse inventory model for non-instantaneous deteriorating items with partial backlogging and inflation over a finite time horizon," OPSEARCH, Springer;Operational Research Society of India, vol. 53(2), pages 278-302, June.
    6. Guchhait, Partha & Kumar Maiti, Manas & Maiti, Manoranjan, 2013. "Production-inventory models for a damageable item with variable demands and inventory costs in an imperfect production process," International Journal of Production Economics, Elsevier, vol. 144(1), pages 180-188.
    7. Maiti, Manas Kumar, 2008. "Fuzzy inventory model with two warehouses under possibility measure on fuzzy goal," European Journal of Operational Research, Elsevier, vol. 188(3), pages 746-774, August.
    8. Maryam Ghoreishi & Gerhard-Wilhelm Weber & Abolfazl Mirzazadeh, 2015. "An inventory model for non-instantaneous deteriorating items with partial backlogging, permissible delay in payments, inflation- and selling price-dependent demand and customer returns," Annals of Operations Research, Springer, vol. 226(1), pages 221-238, March.
    9. Horowitz, Ira, 2000. "EOQ and inflation uncertainty," International Journal of Production Economics, Elsevier, vol. 65(2), pages 217-224, April.
    10. Sana, Shib Sankar, 2010. "A production-inventory model in an imperfect production process," European Journal of Operational Research, Elsevier, vol. 200(2), pages 451-464, January.
    11. S. K. Goyal & B. C. Giri, 2000. "Note on “An Optimal Recursive Method for Various Inventory Replenishment Models with Increasing Demand and Shortages” by Teng et al," Naval Research Logistics (NRL), John Wiley & Sons, vol. 47(7), pages 602-606, October.
    12. Gilding, Brian H., 2014. "Inflation and the optimal inventory replenishment schedule within a finite planning horizon," European Journal of Operational Research, Elsevier, vol. 234(3), pages 683-693.
    13. Chandra K. Jaggi & Mamta Gupta & Amrina Kausar & Sunil Tiwari, 2019. "Inventory and credit decisions for deteriorating items with displayed stock dependent demand in two-echelon supply chain using Stackelberg and Nash equilibrium solution," Annals of Operations Research, Springer, vol. 274(1), pages 309-329, March.
    14. Mahesh Kumar Jayaswal & Mandeep Mittal, 2022. "Impact of Inflation and Credit Financing Policy on the Supply Chain With Learning," International Journal of Information Systems and Supply Chain Management (IJISSCM), IGI Global, vol. 15(1), pages 1-25, January.
    15. Canyakmaz, Caner & Özekici, Süleyman & Karaesmen, Fikri, 2019. "An inventory model where customer demand is dependent on a stochastic price process," International Journal of Production Economics, Elsevier, vol. 212(C), pages 139-152.
    16. Debasis Das & Mohuya Kar & Arindam Roy & Samarjit Kar, 2012. "Two-warehouse production model for deteriorating inventory items with stock-dependent demand under inflation over a random planning horizon," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 20(2), pages 251-280, June.
    17. Abbott, Harish & Palekar, Udatta S., 2008. "Retail replenishment models with display-space elastic demand," European Journal of Operational Research, Elsevier, vol. 186(2), pages 586-607, April.
    18. Chang, Horng-Jinh & Teng, Jinn-Tsair & Ouyang, Liang-Yuh & Dye, Chung-Yuan, 2006. "Retailer's optimal pricing and lot-sizing policies for deteriorating items with partial backlogging," European Journal of Operational Research, Elsevier, vol. 168(1), pages 51-64, January.
    19. Moon, Ilkyeong & Giri, Bibhas Chandra & Ko, Byungsung, 2005. "Economic order quantity models for ameliorating/deteriorating items under inflation and time discounting," European Journal of Operational Research, Elsevier, vol. 162(3), pages 773-785, May.
    20. Muhammad Omair & Mohammed Alkahtani & Kashif Ayaz & Ghulam Hussain & Johannes Buhl, 2022. "Supply Chain Modelling of the Automobile Multi-Stage Production Considering Circular Economy by Waste Management Using Recycling and Reworking Operations," Sustainability, MDPI, vol. 14(22), pages 1-26, November.

    More about this item

    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:wly:navres:v:48:y:2001:i:2:p:144-158. 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: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1002/(ISSN)1520-6750 .

    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.