Computational algorithmic procedure for optimal inventory policy involving ordering cost reduction and back-order discounts when lead time demand is controllable.
Wen-Chuan LeeJong-Wuu WuChia-Ling LeiPublished in: Appl. Math. Comput. (2007)
Keyphrases
- inventory policy
- lead time
- service level
- cost reduction
- supply chain
- infinite horizon
- ordering cost
- single item
- periodic review
- inventory models
- expected profit
- inventory control
- inventory systems
- dual sourcing
- multi item
- lot sizing
- finite horizon
- planning horizon
- holding cost
- lot size
- order quantity
- single product
- stochastic demand
- setup cost
- lost sales
- replenishment policy
- total cost
- inventory level
- cost savings
- random variables
- production planning
- customer demand
- single stage
- production system
- optimal policy
- probabilistic model