D. Soesilo et Kj. Min, AN INVENTORY MODEL WITH VARIABLE LEVELS OF QUALITY ATTRIBUTES VIA GEOMETRIC-PROGRAMMING, International Journal of Systems Science, 27(4), 1996, pp. 379-386
Citations number
20
Categorie Soggetti
System Science","Computer Science Theory & Methods","Operatione Research & Management Science
In the paper an inventory model is proposed for a single product of a
profit-maximizing producer where the level of a critical quality attri
bute of the product is a decision variable (e.g. the processing speed
in megahertz for semiconductor chips). Two additional decision variabl
es are the order quantity and the demand late. The corresponding price
as well as variable and fixed costs are assumed to be power functions
of one or more of these decision variables. This assumption makes it
possible to utilize geometric programming techniques effectively, and
the global optimal solution is derived for the inventory model. In add
ition, extensive sensitivity analyses on primal and dual geometric pro
gramming problems for the inventory model are presented.