Determining optimal production-inventory control policies for an inventory system with partial backlogging
type: Item
instance of: scholarly article
title: Determining optimal production-inventory control policies for an inventory system with partial backlogging
zbMATH Open document ID: 0633.90015
DOI: 10.1016/0305-0548(87)90067-0
published in: Computers \& Operations Research
publication date: 1987-01-01T00:00:00Z
review text: A mathematical model is developed for an inventory system in which the demand during the stockout period is partially backlogged and the items are replenished at a uniform rate. It is shown that by defining a time proportional backordered cost and a penalty cost per unit lost, a convex cost function can be obtained if a suitable set of decision variables is used in the analysis. The determination of optimal production-inventory control policies is thus greatly simplified since it is not necessary to use any ad hoc optimization procedure in the analysis. A numerical example is used to illustrate the theory. Computational results indicate that optimal policies are sensitive to the nature of the demand during the stockout period, and that erroneous assumption of the fraction of the unsatisfied demand that can be backlogged leads to a higher annual operating cost.
Mathematics Subject Classification ID: 90B05
Mathematics Subject Classification ID: 90B30
zbMATH DE Number: 4031362
zbMATH Keywords: partial backlogging
zbMATH Keywords: inventory system
zbMATH Keywords: uniform rate
zbMATH Keywords: optimal production- inventory control policies
author: Kai-Ling Mak
MaRDI profile type: Publication
full work available at URL: 0305-0548(87)90067-0
OpenAlex ID: W2058955831
cites work: Inventory models with a mixture of backorders and lost sales
cites work: A new analysis of a lot-size model with partial backlogging
description: scientific article; zbMATH DE number 4031362