In this paper, we develop an economic production quantity (EPQ) model with inventory rationing for a decaying item under deterministic conditions. Two demand classes are considered, and inventory rationing is implemented by introducing a critical level: when stock is below the critical level, low-priority demand is rejected. The cost model is developed considering two situations, depending on whether the critical level is in the inventory build-up phase or in the inventory depletion phase. We then formulate the optimization problem and propose a solution procedure. Numerical experiments are finally carried out to demonstrate the benefits of implementing inventory rationing. Copyright (C) 2022 IFAC. Copyright (C) 2022 The Authors.

Economic production quantity with inventory rationing for a decaying item / Castellano, D.; Glock, C. H.. - 55:10(2022), pp. 2998-3003. (Intervento presentato al convegno 10th IFAC Conference on Manufacturing Modelling, Management and Control, MIM 2022 tenutosi a Nantes nel 22-24 June 2022) [10.1016/j.ifacol.2022.10.188].

Economic production quantity with inventory rationing for a decaying item

Castellano D.;
2022

Abstract

In this paper, we develop an economic production quantity (EPQ) model with inventory rationing for a decaying item under deterministic conditions. Two demand classes are considered, and inventory rationing is implemented by introducing a critical level: when stock is below the critical level, low-priority demand is rejected. The cost model is developed considering two situations, depending on whether the critical level is in the inventory build-up phase or in the inventory depletion phase. We then formulate the optimization problem and propose a solution procedure. Numerical experiments are finally carried out to demonstrate the benefits of implementing inventory rationing. Copyright (C) 2022 IFAC. Copyright (C) 2022 The Authors.
2022
10th IFAC Conference on Manufacturing Modelling, Management and Control, MIM 2022
Nantes
22-24 June 2022
55
2998
3003
Castellano, D.; Glock, C. H.
Economic production quantity with inventory rationing for a decaying item / Castellano, D.; Glock, C. H.. - 55:10(2022), pp. 2998-3003. (Intervento presentato al convegno 10th IFAC Conference on Manufacturing Modelling, Management and Control, MIM 2022 tenutosi a Nantes nel 22-24 June 2022) [10.1016/j.ifacol.2022.10.188].
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11380/1318247
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