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A Multi-Item Inventory Model With Joint Setup And Concave Production Costs

Author

Listed:
  • Bayindir, Z.P.
  • Birbil, S.I.
  • Frenk, J.B.G.

Abstract

The present paper discusses an approach to solve the joint replenishment problem in a production environment with concave production cost functions. Under this environment, the model leads to a global optimization problem, which is investigated by using some standard results from convex analysis. Consequently, an effective solution procedure is proposed. The proposed procedure is guaranteed to return a solution with a predetermined quality in terms of the objective function value. A computational study is provided to illustrate the performance of the proposed solution procedure with respect to the running time.

Suggested Citation

  • Bayindir, Z.P. & Birbil, S.I. & Frenk, J.B.G., 2004. "A Multi-Item Inventory Model With Joint Setup And Concave Production Costs," Econometric Institute Research Papers ERS-2004-044-LIS, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    • Handle: RePEc:ems:eureir:1535
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    References listed on IDEAS

    as
    1. Edward A. Silver, 1976. "A Simple Method of Determining Order Quantities in Joint Replenishments Under Deterministic Demand," Management Science, INFORMS, vol. 22(12), pages 1351-1361, August.
    2. R Y K Fung & X Ma, 2001. "A new method for joint replenishment problems," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 52(3), pages 358-362, March.
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    Cited by:

    1. Birbil, S.I. & Frenk, J.B.G. & Bayindir, Z.P., 2004. "A Deterministic Inventory/Production Model with General Inventory Cost Rate Function and Concave Production Costs," Econometric Institute Research Papers ERS-2004-064-LIS, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    2. Birbil, S.I. & Frenk, J.B.G. & Bayindir, Z.P., 2004. "A Deterministic Inventory/Production Model with General Inventory Cost Rate Function and Concave Production Costs," ERIM Report Series Research in Management ERS-2004-064-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.

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    More about this item

    Keywords

    Lipschitz optimization; concave production cost; concave-convex programming; inventory; joint setup; multi-item;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

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