Inventory control with multiple setup costs

O. Alp, W.T. Huh, T. Tan

Onderzoeksoutput: Bijdrage aan tijdschriftTijdschriftartikelAcademicpeer review

11 Citaties (Scopus)

Uittreksel

We consider an infinite-horizon, periodic-review, single-item production/inventory system with random demand and backordering, where multiple setups are allowed in any period and a separate fixed cost is associated for each setup. Contrary to the majority of the literature on this topic, we do not restrict the order quantities to be integer multiples of the exogenously given batch size and instead allow the possibility of partial batches, in which case the fixed cost for ordering the batch is still fully charged. We build a model that particularly takes the batch-ordering cost structure into account. We introduce an alternative cost-accounting scheme to analyze the problem, which we use to develop a computationally efficient optimal solution method and several properties of the optimal solution. In addition, we propose two heuristic policies, both of which perform extremely well computationally.
TaalEngels
Pagina's89-103
Aantal pagina's15
TijdschriftManufacturing & Service Operations Management
Volume16
Nummer van het tijdschrift1
DOI's
StatusGepubliceerd - 2014

Vingerafdruk

Batch
Setup cost
Inventory control
Optimal solution
Fixed costs
Random demand
Production-inventory system
Batch size
Cost accounting
Order quantity
Heuristics
Infinite horizon
Periodic review
Cost structure
Integer

Citeer dit

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Inventory control with multiple setup costs. / Alp, O.; Huh, W.T.; Tan, T.

In: Manufacturing & Service Operations Management, Vol. 16, Nr. 1, 2014, blz. 89-103.

Onderzoeksoutput: Bijdrage aan tijdschriftTijdschriftartikelAcademicpeer review

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