TY - JOUR

T1 - Exact solution of inventory replenishment policy for a linear trend in demand - Two-equation model

AU - Lo, Wen Yang

AU - Tsai, Chih Hung

AU - Li, Rong-Kwei

PY - 2002/3/21

Y1 - 2002/3/21

N2 - This study presents a model for obtaining the exact optimal solution of inventory replenishment policy problem. The proposed model, called the "two-equation model", includes two governing equations and a time-frequency algorithm: the first equation determines the optimal replenishment times for a specified number of replenishments; the second equation determines the optimal number of replenishments. The time-frequency algorithm includes two main procedures to solve the first and second equations. In contrast to many approximation approaches, this model exactly solves the first equation, a simultaneous non-linear equations system using a generalized matrix-based solver. This study also examines the classical no-shortage inventory replenishment policy for linear increasing and decreasing trend demand. According to these results, the solution given by the two-equation model is an exact solution.

AB - This study presents a model for obtaining the exact optimal solution of inventory replenishment policy problem. The proposed model, called the "two-equation model", includes two governing equations and a time-frequency algorithm: the first equation determines the optimal replenishment times for a specified number of replenishments; the second equation determines the optimal number of replenishments. The time-frequency algorithm includes two main procedures to solve the first and second equations. In contrast to many approximation approaches, this model exactly solves the first equation, a simultaneous non-linear equations system using a generalized matrix-based solver. This study also examines the classical no-shortage inventory replenishment policy for linear increasing and decreasing trend demand. According to these results, the solution given by the two-equation model is an exact solution.

KW - Inventory

KW - Linear trend in demand

KW - Replenishment

UR - http://www.scopus.com/inward/record.url?scp=0037149317&partnerID=8YFLogxK

U2 - 10.1016/S0925-5273(00)00155-9

DO - 10.1016/S0925-5273(00)00155-9

M3 - Article

AN - SCOPUS:0037149317

VL - 76

SP - 111

EP - 120

JO - International Journal of Production Economics

JF - International Journal of Production Economics

SN - 0925-5273

IS - 2

ER -