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On an EOQ model for deteriorating items with time-varying demand and partial backlogging

Author

Listed:
  • J-T Teng

    (The William Paterson University of New Jersey)

  • H-L Yang

    (Hung Kuang Institute of Technology)

  • L-Y Ouyang

    (Tamkang University, Tamsui)

Abstract

For seasonal products, fashionable commodities and high-tech products with a short product life cycle, the willingness of a customer to wait for backlogging during a shortage period is diminishing with the length of waiting time. Recently, Chang and Dye developed an inventory model in which the backlogging rate declines as the waiting time increases. In this paper, we complement the shortcoming of their model by adding the non-constant purchase cost into the model. In addition, we show that the total cost is a convex function of the number of replenishments. We further simplify the search process by providing an intuitively good starting value, which reduces the computational complexity significantly. Finally, we characterize the influences of the demand patterns over the replenishment cycles and others.

Suggested Citation

  • J-T Teng & H-L Yang & L-Y Ouyang, 2003. "On an EOQ model for deteriorating items with time-varying demand and partial backlogging," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 54(4), pages 432-436, April.
    • Handle: RePEc:pal:jorsoc:v:54:y:2003:i:4:d:10.1057_palgrave.jors.2601490
    DOI: 10.1057/palgrave.jors.2601490
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    References listed on IDEAS

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    1. Richard Bellman, 1957. "On a Dynamic Programming Approach to the Caterer Problem--I," Management Science, INFORMS, vol. 3(3), pages 270-278, April.
    2. S K Goyal & B C Giri, 2001. "A comment on Chang and Dye (1999): EOQ model for deteriorating items with time-varying demand and partial backlogging," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 52(2), pages 238-239, February.
    3. S-P Wang, 2001. "A note on Chang H-J and Dye C-Y (1999). An EOQ model for deteriorating items with time varying demand and partial backlogging. J Opl Res Soc 50: 1176-1182," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 52(5), pages 597-598, May.
    4. P. L. Abad, 1996. "Optimal Pricing and Lot-Sizing Under Conditions of Perishability and Partial Backordering," Management Science, INFORMS, vol. 42(8), pages 1093-1104, August.
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    Citations

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    Cited by:

    1. J-M Chen & L-T Chen, 2004. "Pricing and lot-sizing for a deteriorating item in a periodic review inventory system with shortages," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 55(8), pages 892-901, August.
    2. 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.
    3. Yang, Hui-Ling & Teng, Jinn-Tsair & Chern, Maw-Sheng, 2010. "An inventory model under inflation for deteriorating items with stock-dependent consumption rate and partial backlogging shortages," International Journal of Production Economics, Elsevier, vol. 123(1), pages 8-19, January.
    4. Chern, Maw-Sheng & Yang, Hui-Ling & Teng, Jinn-Tsair & Papachristos, Sotiris, 2008. "Partial backlogging inventory lot-size models for deteriorating items with fluctuating demand under inflation," European Journal of Operational Research, Elsevier, vol. 191(1), pages 127-141, November.
    5. J-T Teng & H-L Yang, 2004. "Deterministic economic order quantity models with partial backlogging when demand and cost are fluctuating with time," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 55(5), pages 495-503, May.
    6. A.K. Bhunia & A.A. Shaikh & R.K. Gupta, 2015. "A study on two-warehouse partially backlogged deteriorating inventory models under inflation via particle swarm optimisation," International Journal of Systems Science, Taylor & Francis Journals, vol. 46(6), pages 1036-1050, April.
    7. J-M Chen & T-H Chen, 2005. "Effects of joint replenishment and channel coordination for managing multiple deteriorating products in a supply chain," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(10), pages 1224-1234, October.
    8. Pentico, David W. & Drake, Matthew J., 2011. "A survey of deterministic models for the EOQ and EPQ with partial backordering," European Journal of Operational Research, Elsevier, vol. 214(2), pages 179-198, October.
    9. Yang, Hui-Ling, 2005. "A comparison among various partial backlogging inventory lot-size models for deteriorating items on the basis of maximum profit," International Journal of Production Economics, Elsevier, vol. 96(1), pages 119-128, April.

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