Efficient near-optimal procedures for some inventory models with backorders-lost sales mixture and controllable lead time, under continuous or periodic review

Braglia, Marcello, Castellano, Davide and Song, Dongping (2018) Efficient near-optimal procedures for some inventory models with backorders-lost sales mixture and controllable lead time, under continuous or periodic review. International Journal of Mathematics in Operational Research, 13 (2). p. 141.

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Abstract

This paper considers a number of inventory models with backorders-lost sales mixture, stockout costs, and controllable lead time. The lead time is a linear function of the lot size and includes a constant term that is made of several components. These lot-size-independent components are assumed to be controllable. Both single- and double-echelon inventory systems, under periodic or continuous review, are considered. To authors' knowledge, these models have never been previously studied in literature. The purpose of this paper is to analyse and optimise these novel inventory models. The optimisation is carried out by means of heuristics that work on an ad hoc approximation of the cost functions. This peculiarity permits to exploit closed-form expressions that make the optimisation procedure simpler and more readily applicable in practice than standard approaches. Finally, numerical experiments investigate the efficiency of the proposed heuristics and the sensitivity of the developed models.

Item Type:	Article
Depositing User:	Symplectic Admin
Date Deposited:	02 Mar 2017 16:37
Last Modified:	19 Jan 2023 07:14
DOI:	10.1504/ijmor.2018.094053
Related URLs:	Publisher
URI:	https://livrepository.liverpool.ac.uk/id/eprint/3006167