We consider the problem of choosing the holding cost in inventory models. Traditionally, the cost of holding inventory is assumed to increase linearly with a rate that is equal to a percentage of the product value. This since the capital cost is believed to make up the main part of the cost. However, recent research indicates that this is not necessarily the case. In the present work, we presen...

In this paper we consider an imperfect production system which produces good and defective items and assume that defective items can be reworked. Due to the nature of rework process we do not restrict the rework rate to be equal to normal production rate or constant and assume that it is a random variable with an arbitrary distribution function. We also assume as it is true in most real world s...

In a centrally managed system, inventory at a retailer can be transshipped to a stocked-out retailer to meet demand. As the inventory at the former retailer may be demanded by future customers of that retailer and transshipment time/cost is non-negligible, it can be more profitable to not transship in some situations. When unsatisfied demand is backordered, reassignment of inventory to a previo...

: In real life situations, especially for new products, the probability is not known due to lack of historical data and adequate information. Then these parameters and variables are treated as fuzzy parameters. Fuzzy set theory is now applied to problems in engineering, business, medical and related health sciences and natural sciences. Over the years there have been successful applications and...

Joint replenishment problem (JRP) is a common real problem which aims to minimize order cost and inventory holding cost. In this paper, classical, centralized and decentralized JRP models are discussed. An innovative heuristic to minimize the total cost is implemented for each model. This heuristic seeks to balance the order cost and the inventory holding costs. The results show that the innova...

Extensive research has been devoted to economic production quantity (EPQ) problem. However, little atten-tion has been paid to problems where depreciation cost and process quality cost must be considered, simulta-neously. In this paper, we consider the economic production quantity model of minimizing the annual total cost subject to depreciation cost and process quality cost, where depreciation...

Motivated by a problem faced by a large manufacturer of a consumer product, we explore the interaction between production planning and capacity acquisition decisions in environments with demand growth. We study a firm producing multiple items in a multiperiod environment where demand for items is known but varies over time with a long-term growth and possible short-term fluctuations. The produc...