An integrated production-inventory model for ameliorating and deteriorating items taking account of time discounting

This study develops an integrated production-inventory model from the perspectives of both the manufacturer and the retailer. The model considered both ameliorating and deteriorating effects taking account of multiple deliveries, partial backordering and time discounting. The amelioration and deterioration are assumed to follow the Weibull distribution. The discounted cash flow and optimization technique are used to derive the optimal solution. A numerical example and the sensitivity analysis are given to illustrate the theory of the integrated production-inventory model. This model is particularly useful for items that ameliorate and deteriorate at the same time.

[1]  Heung-Suk Hwang,et al.  A study on an inventory model for items with weibull ameliorating , 1997 .

[2]  Heung-Suk Hwang,et al.  Inventory models for both deteriorating and ameliorating items , 1999 .

[3]  Avijit Banerjee,et al.  Concurrent pricing and lot sizing for make-to-order contract production , 2005 .

[4]  Shaojun Wang,et al.  Supply chain models for perishable products under inflation and permissible delay in payment , 2000, Comput. Oper. Res..

[5]  Kun-Jen Chung,et al.  Inventory systems for deteriorating items with shortages and a linear trend in demand-taking account of time value , 2001, Comput. Oper. Res..

[6]  Manoranjan Maiti,et al.  An inventory system of ameliorating items for price dependent demand rate , 2003, Comput. Ind. Eng..

[7]  Heung-Suk Hwang,et al.  A stochastic set-covering location model for both ameliorating and deteriorating items , 2004, Comput. Ind. Eng..

[8]  Kun-Jen Chung,et al.  Optimal inventory replenishment models for deteriorating items taking account of time discounting , 2000, Comput. Oper. Res..

[9]  Shu-Lu Hsu,et al.  An integrated inventory model for a single vendor and multiple buyers with ordering cost reduction , 2001 .

[10]  Fassil Nebebe,et al.  Determination of economic production-shipment policy for a single-vendor-single-buyer system , 2000, Eur. J. Oper. Res..

[11]  Po-Chung Yang,et al.  An integrated multi-lot-size production inventory model for deteriorating item , 2003, Comput. Oper. Res..

[12]  Ilkyeong Moon,et al.  The effects of inflation and time-value of money on an economic order quantity model with a random product life cycle , 2000, Eur. J. Oper. Res..

[13]  R. Misra,et al.  Optimum production lot size model for a system with deteriorating inventory , 1975 .

[14]  Bibhas Chandra Giri,et al.  Economic order quantity models for ameliorating/deteriorating items under inflation and time discounting , 2005, Eur. J. Oper. Res..

[15]  H. Wee,et al.  Integrated inventory model for deteriorating items under a multi-echelon supply chain environment , 2003 .