Solution Procedure for Inventory Models with Linear and Fixed Backorder Costs

Abstract

Several researchers applied the algebraic method to solve the optimal solution of EOQ and EPQ models with linear and fixed backorder costs. However, there are questionable derivations in their solution procedure such that researchers provided further examinations. We study two papers that are considered the same inventory models under different notation and slightly different objective functions to provide detailed discussions for their questionable results and our improvements.

Fixed Time Period Modelling for Inventory Control System in Regional Warehousing

“…The inventory cost includes the ordering cost, procurement cost, holding cost and shortage cost (Deb et al, 2018). An inventory control system is used to keep inventories in a desired state while continuing to adequately supply customers, and its success depends on maintaining clear records on a periodic or perpetual basis (Efrilianda et al, 2018;Lin, 2020;Singh et al, 2018). There are two types of inventory model based on stock period, single-period inventory model (SPIM), and multi-period inventory model (MPIM).…”