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An inventory model where backordered demand ratio is exponentially decreasing with the waiting time

Author

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  • Joaquín Sicilia

    ()

  • Luis San-José

    ()

  • Juan García-Laguna

    ()

Abstract

We analyze an inventory system with a mixture of backorders and lost sales, where the backordered demand rate is an exponential function of time the customers wait before receiving the item. Stockout costs (backorder cost and lost sales cost) include a fixed cost and a cost proportional to the length of the shortage period. A procedure for determining the optimal policy and the maximum inventory profit is presented. This work extends several inventory models of the existing literature. Copyright Springer Science+Business Media, LLC 2012

Suggested Citation

  • Joaquín Sicilia & Luis San-José & Juan García-Laguna, 2012. "An inventory model where backordered demand ratio is exponentially decreasing with the waiting time," Annals of Operations Research, Springer, vol. 199(1), pages 137-155, October.
  • Handle: RePEc:spr:annopr:v:199:y:2012:i:1:p:137-155:10.1007/s10479-011-0944-x
    DOI: 10.1007/s10479-011-0944-x
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    References listed on IDEAS

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    Cited by:

    1. Rabin Kumar Mallick & Kartik Patra & Shyamal Kumar Mondal, 2020. "Mixture inventory model of lost sale and back-order with stochastic lead time demand on permissible delay in payments," Annals of Operations Research, Springer, vol. 292(1), pages 341-369, September.
    2. Ata Allah Taleizadeh & Shayan Tavakoli & Luis Augusto San-José, 2018. "A lot sizing model with advance payment and planned backordering," Annals of Operations Research, Springer, vol. 271(2), pages 1001-1022, December.

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