Developing EPQ models for non-instantaneous deteriorating items

Ghasemi, Naser

doi:10.1007/s40092-015-0110-1

Cited by 11 publications

(5 citation statements)

References 31 publications

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“…Mirbahador et al (2013) developed a model for solving two-echelon inventory system of perishable items in a supply chain via a case study scenario. A similar study was presented by Naser Ghasemi (2015) to develop economic production quantity (EPQ) models for non-instantaneous deteriorating items. Two-warehouse system of non-instantaneous deterioration products with promotional effort and inflation over a finite time horizon is presented by Palanivel et al (2018).…”

Section: Literature Reviewmentioning

confidence: 86%

Risk premiums and certainty equivalents of loss-averse newsvendors of bounded utility

Dalalah

2019

J Ind Eng Int

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Loss-averse behavior makes the newsvendors avoid the losses more than seeking the probable gains as the losses have more psychological impact on the newsvendor than the gains. In economics and decision theory, the classical newsvendor models treat losses and gains equally likely, by disregarding the expected utility when the newsvendor is loss-averse. Moreover, the use of unbounded utility to model risk attitudes fails to explain some decision-making paradoxes. In contrast, this paper deals with the utility maximization of the newsvendor using a class of bounded utility functions to study the effect of loss aversion on the newsvendor certainty equivalents and risk premiums. New formulas are introduced to find the utility-optimal order quantity of the normal distribution. The results show that when an exponential loss aversion exists, the classical newsvendor optimal quantity serves as a lower bound when the overage costs are high and as an upper bound when the underage costs are high. In addition, we show that high loss aversion entails higher risk premiums. Similar conclusion holds when the overage/underage costs increase. Higher standard deviations, on the other hand, mean lower utility-optimal quantities and higher risk premiums. The presented formulas are advantageous in finding the optimal order quantities and risk premiums of a stochastic short-shelf life inventory when the loss is a key factor in the decision-making process.

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Section: Literature Reviewmentioning

confidence: 86%

Risk premiums and certainty equivalents of loss-averse newsvendors of bounded utility

Dalalah

2019

J Ind Eng Int

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“…By minimizing total inventory costs through the determination of the optimal order quantity, the EOQ model has been widely adopted and studied. Recents contributions by authors such as Chiu et al(2010) , Gharaei et al(2023) and Ghasemi (2015) have extended the applicability of the EOQ model, considering contemporary challenges such as globalization and technological advancements. Despite its widespread use, the EOQ model has limitations, particularly in industries where production and inventory management are closely intertwined.…”

Section: Review Of Literaturementioning

confidence: 99%

Enhancing Economic Development through Inventory Management Optimization in Agro-based Industries in Bihar: A Comparative Study of EOQ and EPQ Models

2024

IJFMR

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Inventory management is crucial for optimizing operational efficiency and cost-effectiveness in agro-based industries, particularly in regions like Bihar,known for their agricultural resources. This study compares the effectiveness of two inventory management models, the Economic Order Quantity (EOQ) and Economic Production Quantity (EPQ), in addressing the unique challenges faced by Bihar's agro-based industries. Data from Taruwar Agro Industries Private Limited in Ashiyana, Patna, use to calculate EOQ and EPQ values for three product categories: Tomato Chili, Peri Peri, and Punjabi Tadka. The study employs relevant formulas to compute optimal order quantities and total inventory costs, assuming constant demand, quality, price, holding costs, and ordering costs. Both the EOQ and EPQ models offered viable approaches to inventory optimization. EOQ focused on minimizing holding and ordering costs, while EPQ integrated production-related costs to optimize production flow. The study underscored the importance of aligning inventory management strategies with operational capabilities, market demand, and financial objectives. This study contributes to advancing theoretical understanding and practical applications of inventory management in agro-based economies like Bihar. Recommendations for empirical validation, contextual adaptation, technology integration, and long-term impact assessment are provided to enhance inventory management practices. Integration of the BCG matrix into decision-making processes offers a comprehensive approach to prioritizing inventory management strategies and guiding strategic implications.

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“…If an item is out of stock, demand can be backordered or is lost. Shortages most commonly arise in the production context [30][31][32], deteriorating the customer service level with possible impacts on machines interruption, maintenance, rework, and quality.…”

Section: Literature Reviewmentioning

confidence: 99%

Improving Replenishment Flows Using Simulation Results: A Case Study

Benmoussa

2022

Logistics

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Background: Replenishment process is one of the success factors for a more efficient management of operations and a regained profitability. The application of the principles of lean manufacturing in the field of industrial logistics, where substantial improvements in the replenishment process are necessary, is relevant with the objective of optimising the replenishment flow of raw materials from assembly lines in order to propose and implement robust solutions capable of mitigating or even eliminating all types of waste and maximising the productivity of value-added activities. Methods: To achieve this goal, the paper follows the spirit of the DMAIC (Define, Measure, Analyse, Improve and Control) and 5-Why methods that allow the mapping of internal processes of factory logistics in the particular case of a Wire Harness Automotive Plant. Results: Based on the data collected, as well as on specific analysis methods, simulations are launched to challenge and validate the improvements made to the replenishment process. Conclusions: Several generalisable lessons are learnt regarding replenishment flow management, covering topics such as inventory traceability, in addition to logistics costs and process flow optimisation.

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Developing EPQ models for non-instantaneous deteriorating items

Cited by 11 publications

References 31 publications

Risk premiums and certainty equivalents of loss-averse newsvendors of bounded utility

Risk premiums and certainty equivalents of loss-averse newsvendors of bounded utility

Enhancing Economic Development through Inventory Management Optimization in Agro-based Industries in Bihar: A Comparative Study of EOQ and EPQ Models

Improving Replenishment Flows Using Simulation Results: A Case Study

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