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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

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]

Suggested Citation

  • Ping-Hui Hsu & Hui-Ming Teng & Hui-Ming Wee, 2009. "Optimal lot sizing for deteriorating items with triangle-shaped demand and uncertain lead time," European Journal of Industrial Engineering, Inderscience Enterprises Ltd, vol. 3(3), pages 247-260.
  • Handle: RePEc:ids:eujine:v:3:y:2009:i:3:p:247-260
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    Cited by:

    1. Chen, Tsung-Hui & Tsao, Yu-Chung, 2014. "Optimal lot-sizing integration policy under learning and rework effects in a manufacturer–retailer chain," International Journal of Production Economics, Elsevier, vol. 155(C), pages 239-248.

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