Open AccessModels for Optimisation of Delivery Timing and Volumes under Uncertainty Encompassing Penalty and Customer Attrition Risks
Author(s) -
Oleg Kosorukov,
Igor Ilin,
Olga Sviridova
Publication year - 2019
Publication title -
international journal of recent technology and engineering
Language(s) - English
Resource type - Journals
ISSN - 2277-3878
DOI - 10.35940/ijrte.d4407.118419
Subject(s) - attrition , computer science , operations research , inventory management , probability distribution , econometrics , operations management , economics , statistics , engineering , mathematics , medicine , dentistry
The paper proposes a model for inventory management and specifically for determining the optimum volume and timing of deliveries, encompassing the uncertainty of demand. The criteria of efficiency are the minimisation of integral costs and maximisation of profit with due regard for the risks of penalties and customer attrition. The triangular distribution is a reference for the distribution pattern of the stochastic demand and delivery timing fluctuations as it is one of the most common choices in case of insufficient statistical data