An EOQ model with state-dependent demand rate

We present an EOQ-type model in which the demand rate is a function of the inventory level. The demand functions and holding cost functions considered are quite general. In particular, we focus on two types of demand rate functions: a piecewise constant function and a family of exponential functions. The paper includes analysis of the problem, optimization and sensitivity analysis. We also extend the model by adding randomness to the order sizes.

[1]  Oded Berman,et al.  A transfer/clearing inventory model under sporadic review , 2003, Math. Methods Oper. Res..

[2]  Yigal Gerchak,et al.  Supply Chain Coordination when Demand Is Shelf-Space Dependent , 2000, Manuf. Serv. Oper. Manag..

[3]  Søren Asmussen,et al.  An Operational Calculus for Matrix-Exponential Distributions, with Applications to a Brownian (q, Q) Inventory Model , 1998, Math. Oper. Res..

[4]  A. Goswami,et al.  An inventory model for deteriorating items with stock-dependent demand rate , 1996 .

[5]  Oded Berman,et al.  TWO CONTROL POLICIES FOR STOCHASTIC EOQ-TYPE MODELS , 2001, Probability in the Engineering and Informational Sciences.

[6]  Yunzeng Wang,et al.  Periodic‐review inventory models with inventory‐level‐dependent demand , 1994 .

[7]  Anantaram Balakrishnan,et al.  "Stack Them High, Let 'em Fly": Lot-Sizing Policies When Inventories Stimulate Demand , 2004, Manag. Sci..

[8]  Timothy L. Urban.  An Inventory Model with an Inventory-Level-Dependent Demand Rate and Relaxed Terminal Conditions , 1992 .

[9]  Evan L. Porteus.  Foundations of Stochastic Inventory Theory , 2002 .

[10]  R. Levin.  Production/Operations Management: Contemporary Policy for Managing Operating Systems , 1983 .

[11]  Steven Nahmias,et al.  Production and operations analysis , 1992 .

[12]  M. Corstjens,et al.  A Model for Optimizing Retail Space Allocations , 1981 .

[13]  Timothy L. Urban,et al.  A Deterministic Inventory System with an Inventory-Level-Dependent Demand Rate , 1988 .

[14]  M. Parlar,et al.  Periodic Review Production Models With Variable Yield And Uncertain Demand , 1988 .

[15]  Mahmut Parlar,et al.  On the EOQ model with inventory-level-dependent demand rate and random yield , 1994, Oper. Res. Lett..

[16]  A. Goswami,et al.  A deterministic inventory model for deteriorating items with stock-dependent demand rate , 1993 .

[17]  David Perry,et al.  Clearing Models for M/G/1 Queues , 2001, Queueing Syst. Theory Appl..

[18]  B. Mandal,et al.  An Inventory Model for Deteriorating Items and Stock-dependent Consumption Rate , 1989 .

[19]  Yigal Gerchak,et al.  Optimal control approach to production systems with inventory-level-dependent demand , 2002, IEEE Trans. Autom. Control..

[20]  Philip M. Wolfe,et al.  An inventory model for deteriorating items , 1991 .

[21]  Timothy L. Urban.  Inventory models with the demand rate dependent on stock and shortage levels , 1995 .

[22]  T. Datta,et al.  A Note on an Inventory Model with Inventory-level-dependent Demand Rate , 1990 .