×

An inventory model with inflation induced demand and partial backlogging. (English) Zbl 1174.90314

Summary: An inventory lot-sizing model is developed for deteriorating items over a fixed planning horizon, where the Discounted Cash Flow(DCF) approach is used to fully recognize the financial implication of the opportunity cost and out-of-pocket costs. The demand rate is assumed to be influenced by inflation. Shortages are allowed with partial backlogging. The necessary condition which minimizes the total system cost is presented. Then the model is simplified, and an effective solution procedure is provided. Finally, a numerical example and sensitivity analysis are shown to illustrate the model.

MSC:

90B05 Inventory, storage, reservoirs
PDFBibTeX XMLCite