This paper investigates the backorder rate inventory problem with defective units. In practice, the uncertainties of customer’s demand and backorder rate are inherent; hence, backorder rate and customer’s demand are not constant. In this study, we assume that the backorder rate is dependent on the amount of shortages and backorder price discounts, and the lead time demand follows a mixture of d...

This paper allows the backorder rate as a control variable to widen applications of a continuous review inventory model. Moreover, we also consider the backorder rate that is proposed by combining Ouyang and Chuang 2001 or Lee 2005 with Pan and Hsiao 2001 to present a new form. Thus, the backorder rate is dependent on the amount of shortages and backorder price discounts. Besides, we also treat...

All intensively studied and widely applied inventory control policies satisfy demand in accordance with the First-Come-First-Served (FCFS) rule, whether this demand is in backorder or not. Interestingly, this rule is sub-optimal when the fill-rate is constrained or when the backorder cost structure includes fixed costs per backorder and costs per backorder per unit time. In this paper we study ...

Cell Formation (CF) is the initial step in the configuration of cell assembling frameworks. This paper proposes a new mathematical model for the CF problem considering aspects of production planning, namely inventory, backorder, and subcontracting. In this paper, for the first time, backorder is considered in cell formation problem. The main objective is to minimize the total fixed and variable...

The cooperation strategy followed by the buyer and vendor results is an overall effect on the saving percentage along with the impact of inventory costs such as holding cost, fixed and linear backorder cost. This paper deals with buyer vendor incentive inventory model with fixed lifetime product with fixed and linear back order cost. A distinguishing feature of this model is that both fixed and...

In this paper, we consider inventory models for periodic-review systems with replenishment cycles, which consist of a number of periods. By replenishment cycles, we mean that an order is always placed at the beginning of a cycle. We use dynamic programming to formulate both the backorder and lost-sales models, and propose to charge the holding and shortage costs based on the ending inventory of...

The single-vendor single-buyer integrated production inventory system has been an object of study for a long time, but little is known about the effect of investing in reducing ordering cost on the integrated inventory models with backorder price discount and variable lead time. The purpose of this article is to investigate in the continuous review model with backorder price discount and variab...

Long run average costs for finite production rate model with backlogging is less than or equal to that of the same model without backlogging. An equation for calculating intangible backorder cost is proposed for situation when required service level is not attainable. By incorporating this intangible backorder cost in mathematical analysis, one can derive a new optimal lot-size policy that mini...

Due to the rapid changes in circumstances of cooperates such as globalization, technical innovation and competition, inter-dependence among cooperates which compose supply chain has been intensified. This make cooperates be exposed to various risk and even a small uncertainty can disrupt the balance of whole supply chain. Therefore, in this paper, the framework to develop alternative backorder ...

In this paper, fuzzy economic order quantity (EOQ) model for inventory system with partial backorder is proposed. The fuzzy total relevance cost of the model is calculated under function principle. The optimal EOQ is derived using median rule. Fuzzy variables are appropriate when the exact information is unavailable. In the proposed model, the optimal solution for the fuzzy EOQ model is higher ...