An inventory model for deteriorating items under stock-dependent demand and controllable deterioration rate

• Main Authors: Wen-Chieh Cheng, 鄭文絜
• Other Authors: Chung-Yuan Dye
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/68297900657147275812

碩士 === 樹德科技大學 === 經營管理研究所 === 100 === In this paper, we formulate a deteriorating inventory model with stock-dependent de-mand by allowing preservation technology cost as a decision variable in conjunction with re-placement policy. Moreover, it is assumed that the shortages are allowed and partially back-logged, depending on the length of the waiting time for the next replenishment. The objective is to find the optimal replenishment and preservation technology investment strategies while maximizing the total profit per unit time. For any given preservation technology cost, we first prove that the optimal replenishment schedule not only exists but is unique. Next, we show that the total profit per unit time is a concave function of preservation technology cost when the replenishment schedule is given. We then provide a simple algorithm to find the optimal preservation technology cost and replenishment schedule for the proposed model. Finally, we use some numerical examples to illustrate the model.