Optimal replenishment policies for deteriorating control wafers inventory

This paper considers a control wafers replenishment problem with inventory deterioration. In the process, control wafers begin to deteriorate after the pre-disposition. The objective of this research is to minimize the total cost of control wafers, where the cost includes ordering cost, holding cost and purchase cost. We first formulate the control wafers inventory problem as a dynamic programming model. We then transform the control wafers’ inventory problem into the mixed 0–1 linear programming model. An illustrative example with four cases is used to illustrate the practicality of these models, and sensitivity analysis is applied to understand the impact of parameters to these models. The results demonstrate that the proposed mixed 0–1 linear programming model is an effective tool for determining the replenishment of control wafers for multi-periods.

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