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An inventory model with both stock-dependent demand rate and stock-dependent holding cost rate

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  • Yang, Chih-Te

Abstract

In this paper, we develop an inventory model under a stock-dependent demand rate and stock-dependent holding cost rate with relaxed terminal conditions. Shortages are allowed and partially backlogged in the model. The purpose of this study is to determine the optimal order quantity and the ending inventory level such that the total profit per unit time is maximized for the retailer. We first establish a proper model for a mathematical formulation. Then we develop several theoretical results and provide the decision-maker with an algorithm to determine the optimal solution. Finally, numerical examples are provided to illustrate the solution procedure, and a sensitivity analysis of the optimal solution with respect to major parameters is carried out.

Suggested Citation

  • Yang, Chih-Te, 2014. "An inventory model with both stock-dependent demand rate and stock-dependent holding cost rate," International Journal of Production Economics, Elsevier, vol. 155(C), pages 214-221.
  • Handle: RePEc:eee:proeco:v:155:y:2014:i:c:p:214-221
    DOI: 10.1016/j.ijpe.2014.01.016
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. 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.
    2. repec:spr:ijsaem:v:8:y:2017:i:2:d:10.1007_s13198-017-0605-9 is not listed on IDEAS
    3. repec:eee:ejores:v:270:y:2018:i:1:p:337-351 is not listed on IDEAS
    4. Lee, W. & Wang, S.-P. & Chen, W.-C., 2017. "Forward and backward stocking policies for a two-level supply chain with consignment stock agreement and stock-dependent demand," European Journal of Operational Research, Elsevier, vol. 256(3), pages 830-840.
    5. Saha, S. & Goyal, S.K., 2015. "Supply chain coordination contracts with inventory level and retail price dependent demand," International Journal of Production Economics, Elsevier, vol. 161(C), pages 140-152.
    6. repec:spr:annopr:v:248:y:2017:i:1:d:10.1007_s10479-016-2216-2 is not listed on IDEAS
    7. Zhang, Jianxiong & Wang, Yu & Lu, Lihao & Tang, Wansheng, 2015. "Optimal dynamic pricing and replenishment cycle for non-instantaneous deterioration items with inventory-level-dependent demand," International Journal of Production Economics, Elsevier, vol. 170(PA), pages 136-145.
    8. repec:eee:ejores:v:265:y:2018:i:2:p:399-422 is not listed on IDEAS
    9. Yan-Kwang Chen & Fei-Rung Chiu & Hung-Chang Liao & Chien-Hua Yeh, 2016. "Joint optimization of inventory control and product placement on e-commerce websites using genetic algorithms," Electronic Commerce Research, Springer, vol. 16(4), pages 479-502, December.
    10. repec:eee:ejores:v:262:y:2017:i:1:p:136-150 is not listed on IDEAS

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