OPTIMAL PRODUCTION LOT SIZING WHEN DEMAND IS PROPORTIONAL TO STOCK AND BACKORDER LEVELS

Authors

  • Yung-Lung Cheng Chien Hsin University of Science and Technology
  • Wan-Tsu Wang Chien Hsin University of Science and Technology
  • Chun-Chin Wei Chien Hsin University of Science and Technology
  • Kuo-Liang Lee Chien Hsin University of Science and Technology

DOI:

https://doi.org/10.23055/ijietap.2018.25.2.2332

Keywords:

inventory, EPQ, stock-dependent demand, partial backordering

Abstract

In this study, we investigate an inventory model where demand and backordering rates are respectively dependent on stock and backorder levels. We consider that there are highest and lowest demand rates during in-stock and stock-out periods. We derive closed-form solutions, and provide a solution procedure to attain the optimal policy. The proposed model is reduced to the traditional economic production quantity models. Finally, numerical examples are provided to illustrate the solution procedure and compare with existing models. Sensitivity analyses of the optimal solution with respect to parameters are presented.

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Published

2018-04-26

How to Cite

Cheng, Y.-L., Wang, W.-T., Wei, C.-C., & Lee, K.-L. (2018). OPTIMAL PRODUCTION LOT SIZING WHEN DEMAND IS PROPORTIONAL TO STOCK AND BACKORDER LEVELS. International Journal of Industrial Engineering: Theory, Applications and Practice, 25(2). https://doi.org/10.23055/ijietap.2018.25.2.2332

Issue

Vol. 25 No. 2 (2018)

Section

Production Planning and Control

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