scholarly journals Production inventory policy under a discounted cash flow

2005 ◽  
Vol 15 (2) ◽  
pp. 289-300
Author(s):  
Chao-Ton Su ◽  
Cheng-Wang Lin
Keyword(s):  
Cash Flow ◽  
Production Scheduling ◽  
Production Systems ◽  
Simple Algorithm ◽  
Inventory Level ◽  
Discounted Cash Flow ◽  
Proposed Model ◽  
Production Inventory ◽  
Demand Rate ◽  
Holding Cost

This paper presents an extended production inventory model in which the production rate at any instant depends on the demand and the inventory level. The effects of the time value of money are incorporated into the model. The demand rate is a linear function of time for the scheduling period. The proposed model can assist managers in economically controlling production systems under the condition of considering a discounted cash flow. A simple algorithm computing the optimal production-scheduling period is developed. Several particular cases of the model are briefly discussed. Through numerical example, sensitive analyses are carried out to examine the effect of the parameters. Results show that the discount rate parameter and the inventory holding cost have a significant impact on the proposed model.

Continuous production/inventory model with analogy to certain queueing and dam models

1989 ◽  
Vol 21 (01) ◽  
pp. 123-141 ◽  
Author(s):  
David Perry ◽  
Benny Levikson
Keyword(s):  
Production Systems ◽  
Optimization Problems ◽  
Storage Systems ◽  
Continuous Production ◽  
Queueing Systems ◽  
Inventory Level ◽  
Model Optimization ◽  
Fixed Rate ◽  
Production Inventory ◽  
Finite Dam

We consider two storage/production systems in which items are produced continuously over time with fixed rate. In the first system items have infinite lifetime, while in the second system the lifetime of the items are finite and fixed. The inventory level distributions and other important functionals associated with these storage systems are derived. This derivation is accomplished by an analogy existing between the storage systems and certain queueing systems and a finite dam model. Optimization problems connected with these systems are also considered.

Continuous production/inventory model with analogy to certain queueing and dam models

1989 ◽  
Vol 21 (1) ◽  
pp. 123-141 ◽  
Author(s):  
David Perry ◽  
Benny Levikson
Keyword(s):  
Production Systems ◽  
Optimization Problems ◽  
Storage Systems ◽  
Continuous Production ◽  
Queueing Systems ◽  
Inventory Level ◽  
Model Optimization ◽  
Fixed Rate ◽  
Production Inventory ◽  
Finite Dam

We consider two storage/production systems in which items are produced continuously over time with fixed rate. In the first system items have infinite lifetime, while in the second system the lifetime of the items are finite and fixed. The inventory level distributions and other important functionals associated with these storage systems are derived. This derivation is accomplished by an analogy existing between the storage systems and certain queueing systems and a finite dam model. Optimization problems connected with these systems are also considered.

scholarly journals Inventory and Credit Decisions under Day-Terms Credit Linked Demand and Allowance for Bad Debts

2014 ◽  
Vol 2014 ◽  
pp. 1-11 ◽  
Author(s):  
K. K. Aggarwal ◽  
Arun Kumar Tyagi
Keyword(s):  
Logistic Function ◽  
Discounted Cash Flow ◽  
Accounts Receivable ◽  
Credit Period ◽  
Proposed Model ◽  
Net Profit ◽  
Demand Rate ◽  
Explicit Consideration ◽  
Inventory Decisions ◽  
Bad Debt

In order to stimulate demand of their product, firms generally give credit period to their customers. However, selling on credit exposes the firms to the additional dimension of bad debts expense (i.e., customer’s default). Moreover, credit period through its influence on demand becomes a determinant of inventory decisions and inventory sold on credit gets converted to accounts receivable indicating the interaction between the two. Since inventory and credit decisions are interrelated, inventory decisions must be determined jointly with credit decisions. Consequently, in this paper, a mathematical model is developed to determine inventory and credit decisions jointly. The demand rate is assumed to be a logistic function of credit period. The accounts receivable carrying cost along with an explicit consideration of bad debt expense which have been often ignored in previous models are incorporated in the present model. The discounted cash flow approach (DCF) is used to develop the model and the objective is to maximize the present value of the firm’s net profit per unit time. Finally, numerical example and sensitivity analysis have been done to illustrate the effectiveness of the proposed model.

scholarly journals A Model to Decompose Property Rental Multipiers with Regard to the Division Between Land and Building Elements

2016 ◽  
Vol 24 (1) ◽  
pp. 51-63
Author(s):  
S.A. Smolyak
Keyword(s):  
Cash Flow ◽  
Flow Analysis ◽  
Discounted Cash Flow ◽  
Building Element ◽  
New Model ◽  
Proposed Model ◽  
Long Term Forecasting ◽  
The Impact ◽  
Building Elements

Abstract We propose a new model for the decomposition of rental multipliers for the property building element which also supports valuation of income-producing real properties based on the principle of stability and an un-orthodox application of discounted cash flow analysis. Having regard to the building/land element analytical split of overall property, the proposed model explicitly accounts for the impact of the value of underlying land on the decomposition of rental multipliers, and doesn’t require long-term forecasting of income.

Multi-Item Multi-Period Dynamic Capacity-Constrained Lot-Sizing Model with Parallel Machines and Fuzzy Demand

2011 ◽  
Vol 367 ◽  
pp. 627-638
Author(s):  
Ladi Ogunwolu ◽  
O.A. Alli ◽  
Chidi Onyedikam ◽  
A. A. Sosimi
Keyword(s):  
Production Scheduling ◽  
Parallel Machines ◽  
Production Systems ◽  
Planning Horizon ◽  
Mathematical Framework ◽  
Production Environment ◽  
Test Bed ◽  
Lot Size ◽  
Production Inventory ◽  
Fuzzy Demand

Multi-item, multi-period production systems are prevalent in traditional production and distribution settings. A dynamic lot size production scheduling model (DLSPM) for multi-Production/inventory item multi-period production system with parallel machines is proposed in this paper. A mathematical framework that extends the DLSPM to multi-Production/inventory item-multi-period production planning constrained by storage space was built. The criteria of DLSPM explore optimal production schedule with the constraints of inventory, backlogs, production and demand to minimize the total inventory costs over finite planning horizon. Demand analogous to a typical production environment considered includes dynamic deterministic and fuzzy demand. The model was tested with both deterministic and fuzzy demand spread over ten years, for five equal planning periods, with a two Production/inventory item and two parallel machine test bed. From the various demand types, several iterations (sub problems) were generated and optimality condition was then verified. To capture the imprecision that is often inherent in the estimated future demand, demand was specified by fuzzy numbers and modeled using the triangular membership function distribution. Centre of gravity defuzzification scheme was used within finite intervals to obtain defuzzified demand. Tora Operations Research software was used to run the model using a test problem. Computational results vindicate the robustness and flexibility of the approach based on the quality of the solutions obtained.

scholarly journals Deterministic EOQ models for non linear time induced demand and different holding cost functions

2016 ◽  
Vol 12 (2) ◽  
pp. 5949-5959 ◽  
Author(s):  
Surbhi Aneja ◽  
R P Tripathi ◽  
D Singh
Keyword(s):  
Linear Function ◽  
Linear Time ◽  
Inventory Level ◽  
Holding Costs ◽  
Eoq Model ◽  
Eoq Models ◽  
Level Ii ◽  
Non Linear ◽  
Demand Rate ◽  
Holding Cost

This paper presents an Economic order quantity (EOQ) model for deteriorating items. The demand rate is non-linear function of time. In this paper two models have been derived for different holding costs (i) The holding cost is linear function of the on hand inventory level. (ii). A non-linear function of time for which the item is kept in the stock. Optimization is done for both the models and numerical examples are presented to check the feasibility of the optimal solutions. Sensitivity analysis is also presented with respect to the various parameters used in the numerical example.

INVENTORY MODELS WITH STOCK-DEPENDENT DEMAND AND NONLINEAR HOLDING COSTS FOR DETERIORATING ITEMS

2004 ◽  
Vol 21 (04) ◽  
pp. 435-446 ◽  
Author(s):  
CHUN-TAO CHANG
Keyword(s):  
Deteriorating Items ◽  
Inventory Level ◽  
Order Quantity ◽  
Demand Model ◽  
Inventory Models ◽  
Holding Costs ◽  
Proposed Model ◽  
Demand Rate ◽  
Dependent Demand Rate ◽  
Dependent Demand

In this paper, we discuss why it is appropriate maximize the profits, instead of minimizing the costs, in an inventory system with an inventory-level-dependent demand rate. In addition, we restate Urban's viewpoint that the restriction of zero ending-inventory is not necessary in an inventory-level-dependent demand model. Consequently, we amend Giri and Chaudhuri's inventory model for deteriorating items by changing the objective to maximize the profits and relaxing the restriction of zero ending-inventory. Finally, we provide a couple of examples to show that both the order quantity and the profit obtained from our proposed model are significantly larger than those in Giri and Chaudhuri's model, in which the objective is to minimize the costs.

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