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Optimal lot sizing for deteriorating items with triangle-shaped demand and uncertain lead time

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  • Ping-Hui Hsu
  • Hui-Ming Teng
  • Hui-Ming Wee
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    Abstract

    The ordering policy for retailers and the suppliers' system are influenced by lead time and deterioration. In this study, we consider deteriorating items with triangle-shaped demand and uncertain lead time. The triangle-shaped demand has the characteristic of increasing demand during the introduction season followed by decreasing demand immediately after the peak season. An algorithm is developed to derive a replenishment policy such that the expected unit time profit is maximised. A numerical analysis of the coordinated and noncoordinated policies are also presented for comparison. [Submitted 08 January 2008; Revised 15 May 2008; Revised 21 September 2008; Accepted 29 September 2008]

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    Bibliographic Info

    Article provided by Inderscience Enterprises Ltd in its journal European J. of Industrial Engineering.

    Volume (Year): 3 (2009)
    Issue (Month): 3 ()
    Pages: 247-260

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    Handle: RePEc:ids:eujine:v:3:y:2009:i:3:p:247-260

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    Web page: http://www.inderscience.com/browse/index.php?journalID=210

    Related research

    Keywords: deteriorating inventory; uncertain lead times; triangle-shaped demand; coordination; lot sizing; optimisation.;

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