Retailer's EOQ Model with Limited Storage Space Under Partially Permissible Delay in Payments

Huang, Yung‐Fu; Lai, Chun‐Yen; Shyu, Maw-Liann

doi:10.1155/2007/90873

Cited by 7 publications

(4 citation statements)

References 29 publications

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“…Due to this reason, shortages may occur. Huang et al [23] developed an inventory model in which a rental warehouse was considered, with an associated cost, for fulfilling the required capacity in addition to the available warehouse. This inventory model investigated optimal retailer lot-size policies with delayed payments and space constraints.…”

Section: Introductionmentioning

confidence: 99%

Multi-Product Production System with the Reduced Failure Rate and the Optimum Energy Consumption under Variable Demand

2019

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The advertising of any smart product is crucial in generating customer demand, along with reducing sale prices. Naturally, a decrease in price always increases the demand for any smart product. This study introduces a multi-product production process, taking into consideration the advertising- and price-dependent demands of products, where the failure rate of the production system is reduced under the optimum energy consumption. For long-run production systems, unusual energy consumption and machine failures occur frequently, which are reduced in this study. All costs related with the production system are included in the optimum energy costs. The unit production cost is dependent on the production rate of the machine and its failure rate. The aim of this study is to obtain the optimum profit with a reduced failure rate, under the optimum advertising costs and the optimum sale price. The total profit of the model becomes a complex, non-linear function, with respect to the decision variables. For this reason, the model is solved numerically by an iterative method. However, the global optimality is proved numerically, by using the Hessian matrix. The numerical results obtained show that for smart production, the maximum profit always occurs at the optimum values of the decision variables.

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Section: Introductionmentioning

confidence: 99%

Multi-Product Production System with the Reduced Failure Rate and the Optimum Energy Consumption under Variable Demand

2019

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“…This constraint is being considered by many researchers in situations where bulk production is being done. Huang et al [22] developed an inventory model and investigated the optimal retailer's lot sizing policy under partially permissible delay-in-payments and space constraints. They considered extra cost payment for rental warehouse, when the capacity of the existing warehouse is full.…”

Section: Introductionmentioning

confidence: 99%

Effect of Energy and Failure Rate in a Multi-Item Smart Production System

Sarkar

Iqbal

2018

Energies

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To form a smart production system, the effect of energy and machines’ failure rate plays an important role. The main issue is to make a smart production system for complex products that the system may produce several defective items during a long-run production process with an unusual amount of energy consumption. The aim of the model is to obtain the optimum amount of smart lot, the production rate, and the failure rate under the effect of energy. This study contains a multi-item economic imperfect production lot size energy model considering a failure rate as a system design variable under a budget and a space constraint. The model assumes an inspection cost to ensure product’s quality under perfect energy consumption. Failure rate and smart production rate dependent development cost under energy consumption are considered, i.e., lower values of failure rate give higher values of development cost and vice versa under the effect of proper utilization of energy. The manufacturing system moves from in-control state to out-of-control state at a random time. The theory of nonlinear optimization (Kuhn–Tucker method) is employed to solve the model. There is a lemma to obtain the global optimal solution for the model. Two numerical examples, graphical representations, and sensitivity analysis of key parameters are given to illustrate the model.

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“…Studies that allowed external storage include Huang [11], Huang et al [12], Hariga [13], Zhou et al [14], Huang [15], Ouyang et al [16], and Sana [17]. The inventory holding cost at an owned warehouse is normally smaller than at a rented warehouse.…”

Section: Introductionmentioning

confidence: 99%

“…The inventory holding cost at an owned warehouse is normally smaller than at a rented warehouse. Huang [11] and Huang et al [12] developed a retailer's inventory model when demand is known and constant and considered ordering cost and holding cost while shortages are not considered. The inventory policy was to find optimal time between order and order quantity, a ( , ) policy.…”

Section: Introductionmentioning

confidence: 99%

Mathematical Model of (R, Q) Inventory Policy under Limited Storage Space for Continuous and Periodic Review Policies with Backlog and Lost Sales

Singha

Buddhakulsomsiri

Parthanadee

2017

Mathematical Problems in Engineering

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This paper involves developing new mathematical expressions to find reorder point and order quantity for inventory management policies that explicitly consider storage space capacity. Both continuous and periodic reviews, as well as backlogged and lost demand during stockout, are considered. With storage space capacity, when on-hand inventory exceeds the capacity, the over-ordering cost of storage at an external warehouse is charged on a per-unit-period basis. The objective is to minimize the total cost, consisting of ordering, shortage, holding, and over-ordering costs. Demand and lead time are stochastic and discrete in nature. Demand during varying lead time is modeled using an empirical distribution so that the findings are not subject to assumptions of demand and lead time probability distributions. Due to the complexity of the developed mathematical expressions, the problems are solved using an iterative method. The method is tested with problem instances that use real data from industry. Optimal solutions of the problem instance are determined by performing exhaustive search. The proposed method can effectively find optimal solutions for continuous review policies and near optimal solutions for periodic review policies. Fundamental insights about the inventory policies are reported from a comparison between continuous review and periodic review solutions, as well as a comparison between backlog and lost sales cases.

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Retailer's EOQ Model with Limited Storage Space Under Partially Permissible Delay in Payments

Cited by 7 publications

References 29 publications

Multi-Product Production System with the Reduced Failure Rate and the Optimum Energy Consumption under Variable Demand

Multi-Product Production System with the Reduced Failure Rate and the Optimum Energy Consumption under Variable Demand

Effect of Energy and Failure Rate in a Multi-Item Smart Production System

Mathematical Model of (R, Q) Inventory Policy under Limited Storage Space for Continuous and Periodic Review Policies with Backlog and Lost Sales

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