Premium
Note on “An Optimal Recursive Method for Various Inventory Replenishment Models with Increasing Demand and Shortages” by Teng et al.
Author(s) -
Goyal S. K.,
Giri B. C.
Publication year - 2000
Publication title -
naval research logistics (nrl)
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.665
H-Index - 68
eISSN - 1520-6750
pISSN - 0894-069X
DOI - 10.1002/1520-6750(200010)47:7<602::aid-nav5>3.0.co;2-n
Subject(s) - economic shortage , operations research , total cost , computer science , inventory cost , mathematical optimization , economics , mathematical economics , mathematics , microeconomics , business , supply chain , linguistics , philosophy , marketing , government (linguistics)
In a recent paper, Teng, Chern, and Yang consider four possible inventory replenishment models and determine the optimal replenishment policies for them. They compare these models to identify the best alternative on the basis of minimum total relevant inventory costs. The total cost functions for Model 1 and Model 4 as derived by them are not exact for the comparison. As a result, their conclusion on the least expensive replenishment policy is incorrect. The present article provides the actual total costs for Model 1 and Model 4 to make a correct comparison of the four models. © 2000 John Wiley & Sons, Inc. Naval Research Logistics 47: 602–606, 2000