Optimal Policy for Stochastic Lot-Sizing Inventory Model with Deterioration and Partial Backlogging
نویسنده
چکیده
A finite horizon inventory model for a single deteriorating product is studied. The system is under periodic review and there is a positive fixed order cost associated with any placed order. The demand in successive periods is independent and identically distributed. A constant fraction of any positive leftover stock is deteriorated at the end of each period. Any unsatisfied demand is partially backlogged and fulfilled immediately as a new order arrives. Previous research has proved that a (s, S) policy is optimal under complete backlogging and non-deterioration. This paper fulfills the vacancy of the current literature by considering the effects of deterioration and partial backlogging under stochastic demand. The conditions for optimality of (s, S) policy are successfully derived.
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