Frenk, Hans and Kaya, Murat and Pourghannad, Behrooz (2014) Generalizing the ordering cost and holdingbacklog cost rate functions in EOQtype inventory models. In: Choi, Jason, (ed.) Handbook of EOQ Inventory Problems: Stochastic and Deterministic Models and Applications. International Series in Operations Research & Management Science; 197, Part I. Springer, New York, NY, pp. 79119. ISBN 9781461476382 (Print) 9781461476399 (Online)
This is the latest version of this item.
Official URL: http://dx.doi.org/10.1007/9781461476399_5
Abstract
In this chapter, we discuss generalizations of the ordering, inventory holding and backlog costs in EOQtype models. We solve nested optimization problems to determine the orderupto level S and cycle length T values that characterize optimal (S, T ) inventory policies. Using these, we characterize the order quantity, maximum backlog and fill rate in the optimal solution. We also study the sensitivity of these optimal values with respect to model parameters demand rate and opportunity cost rate. We present structural results for certain classes of ordering cost and holdingbacklog cost rate functions that yield to a convex optimization problem. More general cost functions require the solution of a global optimization problem. For such cases, using our structural results, we generate lower and upper bounds on the optimal T. We illustrate how these bounds can be used to construct efficient computational algorithms to determine the optimal cycle length.
Item Type:  Book Section / Chapter 

Subjects:  H Social Sciences > HD Industries. Land use. Labor > HD0028 Management. Industrial Management 
Divisions:  Faculty of Engineering and Natural Sciences > Academic programs > Manufacturing Systems Eng. Faculty of Engineering and Natural Sciences 
Depositing User:  Murat Kaya 
Date Deposited:  21 Jan 2014 14:36 
Last Modified:  26 Apr 2022 08:31 
URI:  https://research.sabanciuniv.edu/id/eprint/22928 
Available Versions of this Item

Generalizing the ordering cost and holdingbacklog cost rate functions in EOQtype inventory models. (deposited 28 Nov 2012 10:53)
 Generalizing the ordering cost and holdingbacklog cost rate functions in EOQtype inventory models. (deposited 21 Jan 2014 14:36) [Currently Displayed]