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An inventory model involving back-order price discount when the amount received is uncertain
- Source :
- International Journal of Systems Science. 47:662-671
- Publication Year :
- 2014
- Publisher :
- Informa UK Limited, 2014.
-
Abstract
- This paper presents and analyses the continuous review inventory model with order quantity, safety factor, back-order price discount, ordering cost and lead time as decision variables. Our work is based on the paper of Huang 2010. We extend the model to incorporate the situation when the amount received is uncertain. The lead time demand is assumed follows a normal distribution. A solution procedure is developed to find the optimal solution. A numerical example is given to illustrate the model. A sensitivity analysis is also included to describe the effects of changes in the model parameters on the expected annual cost.
- Subjects :
- 021103 operations research
Safety factor
Computer science
Work (physics)
0211 other engineering and technologies
02 engineering and technology
Price discount
Reorder point
Computer Science Applications
Theoretical Computer Science
Normal distribution
Control and Systems Engineering
Order (business)
0202 electrical engineering, electronic engineering, information engineering
Econometrics
020201 artificial intelligence & image processing
Sensitivity (control systems)
Lead time
Subjects
Details
- ISSN :
- 14645319 and 00207721
- Volume :
- 47
- Database :
- OpenAIRE
- Journal :
- International Journal of Systems Science
- Accession number :
- edsair.doi...........86df0cf4b3bb289e2cd4caa210ad5655
- Full Text :
- https://doi.org/10.1080/00207721.2014.900136