scholarly journals Optimization of an inventory system with partial backlogging from a financial investment perspective

2021 ◽  
Author(s):  
Luis‐A. San‐José ◽  
Joaquín Sicilia ◽  
Valentín Pando ◽  
David Alcaide‐López‐de‐Pablo
Keyword(s):  
Inventory System ◽  
Partial Backlogging ◽  
Financial Investment

Substitutable Inventory System with Partial Backlogging under Continuous Review

2016 ◽  
pp. 183-199
Author(s):  
B. Vigneshwaran ◽  
N. Anbazhagan ◽  
V. Perumal
Keyword(s):  
Inventory System ◽  
The Other ◽  
Inventory Level ◽  
Partial Backlogging ◽  
Numerical Examples ◽  
Cost Rate ◽  
Continuous Review ◽  
Time Points ◽  
Negative Exponential Distribution ◽  
Negative Exponential

Consider a two-commodity substitutable inventory system with storage capacity Si for commodity i, (i=1,2) under continuous review. The demand time points for each commodity are assumed to form independent Poisson processes. The two commodities are assumed to be substitutable. That is when any one of the commodity's inventory level reaches zero, then the demand for that commodity will be satisfied by the other commodity. If no substitute is available, then this demand is backlogged up to the level Ni, for commodity i, (i=1,2). The reordering policy is to place an order for both the commodities, when both inventory levels are less than or equal to their respective reorder levels. If the inventory level drops to N1 or N2, then both inventory levels are pulled back to their maximum levels S1 and S2 immediately and the previous order gets canceled. The lead time is assumed to follow negative exponential distribution. Various stationary measures of system performances have been derived and total expected cost rate is computed. Numerical examples are provided.

AN INVENTORY SYSTEM WITH PARTIAL BACKLOGGING MODELED ACCORDING TO A LINEAR FUNCTION

2005 ◽  
Vol 22 (02) ◽  
pp. 189-209 ◽  
Author(s):  
L. A. SAN JOSÉ ◽  
J. SICILIA ◽  
J. GARCÍA-LAGUNA
Keyword(s):  
Sensitivity Analysis ◽  
Linear Function ◽  
Optimal Policy ◽  
Opportunity Cost ◽  
Inventory System ◽  
Inventory Systems ◽  
Partial Backlogging ◽  
Shortage Cost ◽  
Input Parameters ◽  
Theoretical Results

In this paper, we study an inventory system with partial backlogging, in which the backlogging rate is a continuous and nonincreasing two piece function. The total shortage cost includes three significant costs: the unit backorder cost (depending on the backorder time), the opportunity cost, and the goodwill cost. This model generalizes several inventory systems studied by other authors. The optimal policy is characterized through several results, which depend on the values of the known input parameters. Illustrative examples and a sensitivity analysis, which help us understand the theoretical results, are also given.

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