In this paper we develop an economic order quantity model to investigate the optimal replenishment policies for instantaneous deteriorating items under inflation and trade credit. Demand rate is a linear function of selling price and decreases negative exponentially with time over a finite planning horizon. Shortages are allowed and partially backlogged. Under these conditions, we model the ret...

This paper addresses the inventory penalty pricing problem under risk-neutral valuation principle. In particular, we consider an inventory driven by a constant replenishment rate and compound renewal demand stream (iid demand inter-arrival time and iid demand quantity), and subject to overage penalties and underage penalties. Our solution approach treats the inventory penalties of overage and u...

In the previous chapter we assumed that replenishment is instantaneous and no shortage is permitted (shortage cost infinity).In this chapter we assume that replenishment of inventory does not materialize immediately as placement of order ,rather takes a random amount of time for order materialization .Thus we have now a finite shortage cost situation. Another salient feature of this chapter is ...

In practice, demands for items are often correlated with each other because of cross-selling effects. Traditional inventory models hold the assumption that demands are independent, which may lead to the risk of misestimating the inventory cost of associated items. This paper addresses a multi-item inventory system where demands for some minor items are correlated with that for a major item. Bec...

In general, traditional production-inventory systems are based on a number of simplifying – but somewhat unrealistic – assumptions, including constant demand rate, constant holding cost, and instantaneous order replenishment. These assumptions have been individually challenged in numerous variations of production-inventory models. Finite production rate models, such as economic production quant...

In this paper, an inventory model with finite and constant replenishment rate, price dependant demand rate, time value of money and inflation, finite time horizon, lead time and exponential deterioration rate and with the objective of maximizing the present worth of the total system profit is developed. Using a dynamic programming based solution algorithm, the optimal sequence of the cycles can...

In this paper we give a comparative overview on research works dealing with replenishment policies. Following recalls of the inventory control concepts, a recent literature review is given relating to spare parts. Cited works are classified into two categories, those who consider inventory control as statistic and the others, as dynamic. For each category, works about economic order quantity an...

Combining the study of queuing with inventory is very common and such systems are referred to as queuing-inventory in literature. These occur naturally practice have been studied extensively The considered literature generally include (s,S)-type. However, this paper we look at opportunistic-type replenishment which there an independent point process that used model events called opportunistic f...