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Four inventory models for deteriorating items with time varying demand and partial backlogging: A cost comparison
Author(s) -
Skouri K.,
Papachristos S.
Publication year - 2003
Publication title -
optimal control applications and methods
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.458
H-Index - 44
eISSN - 1099-1514
pISSN - 0143-2087
DOI - 10.1002/oca.734
Subject(s) - economic shortage , time horizon , ranking (information retrieval) , rank (graph theory) , holding cost , function (biology) , exponential function , inventory control , total cost , mathematical optimization , computer science , inventory cost , operations research , mathematical economics , econometrics , economics , mathematics , microeconomics , supply chain , artificial intelligence , combinatorics , political science , law , mathematical analysis , linguistics , philosophy , evolutionary biology , government (linguistics) , biology
In this paper we present four inventory control models under the following assumptions. Planning horizon is finite and demand is a general logconcave function of time. The models allow for deterioration of items over time and shortages partially backlogged at an exponential rate. For each of the models we establish the existence of a unique optimal policy. We then compute their optimal costs and rank them according to cost performance. This ranking indicates that model four gives the lowest cost. Numerical examples are given to support the theoretical findings and explain the application of procedures. Copyright © 2003 John Wiley & Sons, Ltd.