Note on sensitivity analysis of inventory model with partial backorders

Abstract

In reality, most of the values used for estimating future inventory are parameters derived from the present inventory model. Therefore, researchers must consider how changes in related environments will impact these parameters. A sensitivity analysis explores the impact on the optimal solution when the parameter values vary. This note extends Chu and Chung's [European Journal of Operational Research 152 (2004) 289-295] paper for the sensitivity analysis of the inventory model with partial backorders. We found the criterion for determining when to run the inventory system. This new discovery deserves careful examination. Numerical examples are provided to demonstrate our findings. © 2006 Elsevier B.V. All rights reserved.