Inventory model of deteriorating items on non-periodic discrete-time domains

Atici F. M., Lebedinsky A., Uysal F.

EUROPEAN JOURNAL OF OPERATIONAL RESEARCH, vol.230, no.2, pp.284-289, 2013 (SCI-Expanded)

  • Publication Type: Article / Article
  • Volume: 230 Issue: 2
  • Publication Date: 2013
  • Doi Number: 10.1016/j.ejor.2013.04.043
  • Journal Name: EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus
  • Page Numbers: pp.284-289
  • Keywords: Discrete calculus, Deterministic inventory models, Optimization, DEMAND
  • Akdeniz University Affiliated: Yes

Abstract

In this paper, we demonstrate how to model a discrete-time dynamic process on a non-periodic time domain with applications to operations research. We introduce a discrete-time model of inventory with deterioration on domains where time points may be unevenly spaced over a time interval. We formalize the average cost function composed of storage, depreciation and back-ordering costs. The optimal condition is given to locate the optimal point that minimizes the average cost function. Finally, we present simulations to demonstrate how a manager can use this model to make inventory decisions.

In this paper, we demonstrate how to model a discrete-time dynamic process on a non-periodic time domain with applications to operations research. We introduce a discrete-time model of inventory with deterioration on domains where time points may be unevenly spaced over a time interval. We formalize the average cost function composed of storage, depreciation and back-ordering costs. The optimal condition is given to locate the optimal point that minimizes the average cost function. Finally, we present simulations to demonstrate how a manager can use this model to make inventory decisions. Published by Elsevier B.V.