RT info:eu-repo/semantics/article
T1 An inventory system with time-dependent demand and partial backordering under return on inventory investment maximization
A1 San José Nieto, Luis Augusto
A1 Sicilia Rodríguez, Joaquín
A1 Pando Fernández, Valentín
A1 Alcaide López de Pablo, David
K1 Inventory systems
K1 Return on Inventory Investment
K1 Time-dependent demand
K1 Partial backordering
K1 Shortage costs
AB In this article, we study an inventory system for items that have a power demand pattern and where shortages are allowed. We suppose that only a fixed proportion of demand during the stock-out period is backordered. The decision variables are the inventory cycle and the ratio between the initial stock and the total quantity demanded throughout the inventory cycle. The objective is to maximize the Return on Inventory Investment (ROII) defined as the ratio of the profit per unit time over the average inventory cost. After analysing the objective function, the optimal global solutions for all the possible cases of the inventory problem are determined. These optimal policies that maximize the ROII are, in general, different from those that minimize the total inventory cost per unit time. Finally, a numerical sensitivity analysis of the optimal inventory policy with respect to the system input parameters and some useful managerial insights derived from the results are presented.
SN 0305-0548
YR 2022
FD 2022
LK http://riull.ull.es/xmlui/handle/915/35533
UL http://riull.ull.es/xmlui/handle/915/35533
LA en
DS Repositorio institucional de la Universidad de La Laguna
RD 13-jul-2024