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An EPQ model with partial backorders considering two backordering costs

Author

Listed:
  • Wee, Hui-Ming
  • Huang, Yen-Deng
  • Wang, Wan-Tsu
  • Cheng, Yung-Lung

Abstract

We propose an EPQ model with partial backorders considering linear and fixed backordering costs. Time intervals rather than ordering size and backordering level are used as decision variables to derive the closed-form optimal solution. Our approach analyzes different optimal inventory policies and decides whether shortage period should be scheduled. In addition, a critical backordering rate is derived to determine the feasible optimal solution. The numerical example is provided to illustrate the solution procedure.

Suggested Citation

  • Wee, Hui-Ming & Huang, Yen-Deng & Wang, Wan-Tsu & Cheng, Yung-Lung, 2014. "An EPQ model with partial backorders considering two backordering costs," Applied Mathematics and Computation, Elsevier, vol. 232(C), pages 898-907.
  • Handle: RePEc:eee:apmaco:v:232:y:2014:i:c:p:898-907
    DOI: 10.1016/j.amc.2014.01.106
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    References listed on IDEAS

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    Cited by:

    1. Hossein Salehi & Ata Allah Taleizadeh & Reza Tavakkoli-Moghaddam, 2016. "An EOQ model with random disruption and partial backordering," International Journal of Production Research, Taylor & Francis Journals, vol. 54(9), pages 2600-2609, May.
    2. Biswajit Sarkar & Sharmila Saren & Mitali Sarkar & Yong Won Seo, 2016. "A Stackelberg Game Approach in an Integrated Inventory Model with Carbon-Emission and Setup Cost Reduction," Sustainability, MDPI, Open Access Journal, vol. 8(12), pages 1-23, December.
    3. San-José, L.A. & Sicilia, J. & García-Laguna, J., 2015. "Analysis of an EOQ inventory model with partial backordering and non-linear unit holding cost," Omega, Elsevier, vol. 54(C), pages 147-157.
    4. Sudip Adak & G. S. Mahapatra, 0. "Effect of reliability on multi-item inventory system with shortages and partial backlog incorporating time dependent demand and deterioration," Annals of Operations Research, Springer, vol. 0, pages 1-21.
    5. Shayan Tavakoli & Ata Allah Taleizadeh, 2017. "An EOQ model for decaying item with full advanced payment and conditional discount," Annals of Operations Research, Springer, vol. 259(1), pages 415-436, December.

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