Two-warehouse partial backlogging inventory models with three-parameter Weibull distribution deterioration under inflation
AbstractIn many inventory systems, the effects of deterioration of physical goods have drawn much attention of various researchers in recent years. The more the deterioration is, the more the order quantity would be. According to such consideration, taking the deterioration rate into account is necessary. Thus, in this paper, I develop the two-warehouse partial backlogging inventory model introduced in Yang (2006) to incorporate three-parameter Weibull deterioration distribution. The objective is to derive the optimal replenishment policy that minimizes the net present value of total relevant cost per unit time. Two alternative models are compared based on the minimum cost approach. The study shows that the optimal solution not only exists but also is unique. Model 2 is still less expensive to operate than Model 1 in the proposed model. Finally, some numerical examples and sensitivity analysis on parameters are made to validate the results of the proposed inventory system.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Elsevier in its journal International Journal of Production Economics.
Volume (Year): 138 (2012)
Issue (Month): 1 ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/ijpe
Two-warehouse; Partial backlogging; Weibull distribution; Deterioration; Inflation;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lo, Sh-Tyan & Wee, Hui-Ming & Huang, Wen-Chang, 2007. "An integrated production-inventory model with imperfect production processes and Weibull distribution deterioration under inflation," International Journal of Production Economics, Elsevier, vol. 106(1), pages 248-260, March.
- Skouri, K. & Konstantaras, I. & Papachristos, S. & Ganas, I., 2009. "Inventory models with ramp type demand rate, partial backlogging and Weibull deterioration rate," European Journal of Operational Research, Elsevier, vol. 192(1), pages 79-92, January.
- Lo, Sh-Tyan & Wee, Hui-Ming & Huang, Wen-Chang, 2007. "An integrated production-inventory model with imperfect production processes and Weibull distribution deterioration under inflation," International Journal of Production Economics, Elsevier, vol. 106(2), pages 493-505, April.
- Goyal, S. K. & Giri, B. C., 2001. "Recent trends in modeling of deteriorating inventory," European Journal of Operational Research, Elsevier, vol. 134(1), pages 1-16, October.
- Yang, Hui-Ling, 2006. "Two-warehouse partial backlogging inventory models for deteriorating items under inflation," International Journal of Production Economics, Elsevier, vol. 103(1), pages 362-370, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If references are entirely missing, you can add them using this form.