Abstract
This paper proposes a logistic-based approach to a class of inventory problems with shortages and time decay functions. Time decay and shortages are a common phenomena in products with short life cycles, and financial volatility necessitates more accurate characterisation of inventory costs based on time-adjusted value. In this paper an extended approach of Wagner-Whitin (WW) is used to determine lot sizes, replenishment cycle, and schedules. A sensitivity analysis of the proposed optimisation procedure has been conducted to justify its advantages.
Original language | English |
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Pages (from-to) | 3864-3879 |
Number of pages | 16 |
Journal | International Journal of Production Research |
Volume | 51 |
Issue number | 13 |
DOIs | |
Publication status | Published - 1 Jul 2013 |
Keywords
- deterioration
- inventory management
- lot sizes
- perishable products
- time value
ASJC Scopus subject areas
- Strategy and Management
- Management Science and Operations Research
- Industrial and Manufacturing Engineering