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A Deterministic Inventory/Production Model with General Inventory Cost Rate Function and Concave Production Costs

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Author Info
Birbil, S.I.
Frenk, J.B.G.
Bayindir, Z.P. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
Abstract

We present a thorough analysis of the economic order quantity model with shortages under a general inventory cost rate function and concave production costs. By using some standard results from convex analysis, we show that the model exhibits a composite concave-convex structure. Consequently, an effective solution procedure, particularly useful for an approximation scheme, is proposed. A computational study is appended to illustrate the performance of the proposed solution procedure.

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File URL: http://hdl.handle.net/1765/1536
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Paper provided by Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam. in its series Research Paper with number ERS-2004-064-LIS Revision_Date: 2009-07-29.

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Date of creation: 30 Aug 2004
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Handle: RePEc:dgr:eureri:30001669

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Related research
Keywords: Inventory; general inventory cost function; concave production cost; concave-convex programming;

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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.:
  1. Frenk, J. B. G. & Kleijn, M. J. & Dekker, R., 1999. "An efficient algorithm for a generalized joint replenishment problem," European Journal of Operational Research, Elsevier, vol. 118(2), pages 413-428, October. [Downloadable!] (restricted)
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  2. Bayindir, Z.P. & Birbil, S.I. & Frenk, J.B.G., 2004. "A Multi-Item Inventory Model With Joint Setup And Concave Production Costs," Research Paper ERS-2004-044-LIS Revision, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni. [Downloadable!]
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This page was last updated on 2009-12-16.


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