A modified (S-1,S) inventory system for deteriorating items with Poisson demand and non-zero lead time

12Citations
Citations of this article
27Readers
Mendeley users who have this article in their library.

Abstract

An inventory system is considered for continuous decaying items with non-zero lead time and stochastic demand when shortages are allowed and all unsatisfied demands are backlogged. In this research we consider orders as separate packages where replenishment is one-for-one and a modified base stock policy is applied. In this paper, a penalty cost is introduced for stochastic inventory models with decaying items when less than one unit of the product is delivered to the customers. The objective of the warehouse is to maximize his average profit. Since the concavity analysis of the model is extremely complicated, an upper bound is introduced and an algorithm is presented for finding the optimal solution. Finally, a numerical example is presented and sensitivity analysis is carried out for a number of important parameters. © 2013 Elsevier Inc.

Cite

CITATION STYLE

APA

Alizadeh, M., Eskandari, H., & Sajadifar, S. M. (2014). A modified (S-1,S) inventory system for deteriorating items with Poisson demand and non-zero lead time. Applied Mathematical Modelling, 38(2), 699–711. https://doi.org/10.1016/j.apm.2013.07.014

Register to see more suggestions

Mendeley helps you to discover research relevant for your work.

Already have an account?

Save time finding and organizing research with Mendeley

Sign up for free