Many methods have being used for finding optimal ordering policy for the fixed lifetime inventory system. The dynamic programming approach is one of such methods. Hitherto, the claim is that the approach is not applicable to systems with lifetime greater than two periods. In this work, we used a total cost function in the literature to derive the equations for the ordered quantity in each period, for a products with lifetime greater than two periods. MATHEMATICA 8 was used to solve the equations.
The fixed lifetime inventory system assumes that outdated items are discarded from inventory. Such inventory system is here referred to as regular inventory system. The non-regular fixed lifetime inventory system assumes that outdated items are not discarded from inventory. The features of both the regular and non-regular inventory systems are compared in this work and the total revenue function for the non-regular fixed lifetime inventory system is derived.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.