Ma. Hariga et L. Benkherouf, OPTIMAL AND HEURISTIC INVENTORY REPLENISHMENT MODELS FOR DETERIORATING ITEMS WITH EXPONENTIAL TIME-VARYING DEMAND, European journal of operational research, 79(1), 1994, pp. 123-137
Citations number
15
Categorie Soggetti
Management,"Operatione Research & Management Science
In this paper we present optimal and heuristic procedures for the inve
ntory replenishment problem in which items are deteriorating at a cons
tant rate. The demand rates are changing exponentially with time over
a known and finite planning horizon. We have developed an iterative nu
merical procedure to find the optimal replenishment schedule. The firs
t two heuristics are based on the economic order interval approximatio
n. The third heuristic restricts all the replenishment cycles over the
planning horizon to be equal over the planning horizon. The last thre
e heuristics are extended versions of the Silver-Meal heuristic, the l
east cost approach, and the least-unit cost heuristic which were used
in the inventory literature for the case of discrete time-varying dema
nd without deterioration. We further assess the cost and computation t
ime effectiveness of the six heuristics. The results of a simple of 14
40 problems show that the extended least cost approach is the most cos
t effective.