RT info:eu-repo/semantics/article
T1 Profit maximization in an inventory system with time-varying demand, partial backordering and discrete inventory cycle
A1 San-José Nieto, Luis Augusto
A1 Sicilia Rodríguez, Joaquín
A1 González de la Rosa, Manuel
A1 Febles Acosta, Jaime
K1 EOQ inventory models
K1 Discrete-time cycle
K1 Time-varying demand
K1 Partial backordering
AB In this paper, an inventory problem where the inventory cycle must be an integer multiple ofa known basic period is considered. Furthermore, the demand rate in each basic period is apower time-dependent function. Shortages are allowed but, taking necessities or interests ofthe customers into account, only a fixed proportion of the demand during the stock-out periodis satisfied with the arrival of the next replenishment. The costs related to the managementof the inventory system are the ordering cost, the purchasing cost, the holding cost, thebackordering cost and the lost sale cost. The problem is to determine the best inventorypolicy that maximizes the profit per unit time, which is the difference between the incomeobtained from the sales of the product and the sum of the previous costs. The modeling ofthe inventory problem leads to an integer nonlinear mathematical programming problem. Tosolve this problem, a new and efficient algorithm to calculate the optimal inventory cycleand the economic order quantity is proposed. Numerical examples are presented to illustratehow the algorithm works to determine the best inventory policies. A sensitivity analysis ofthe optimal policy with respect to some parameters of the inventory system is developed.Finally, conclusions and suggestions for future research lines are given.
SN 0254-5330
YR 2022
FD 2022
LK http://riull.ull.es/xmlui/handle/915/35522
UL http://riull.ull.es/xmlui/handle/915/35522
LA en
DS Repositorio institucional de la Universidad de La Laguna
RD 12-may-2024