Publication Date:
2009-01-01
Description:
This paper allows the backorder rate as a control variable to widen applications of a continuous review inventory model. Moreover, we also consider the backorder rate that is proposed by combining Ouyang and Chuang (2001) (or Lee (2005)) with Pan and Hsiao (2001) to present a new form. Thus, the backorder rate is dependent on the amount of shortages and backorder price discounts. Besides, we also treat the ordering cost as a decision variable. Hence, we develop an algorithmic procedure to find the optimal inventory policy by minimax criterion. Finally, a numerical example is also given to illustrate the results.
Print ISSN:
1024-123X
Electronic ISSN:
1563-5147
Topics:
Mathematics
,
Technology