Research note on the criteria for the optimal solution of the inventory model with a mixture of partial backordering and lost sales

Gino K. Yang*, Shuo Yan Chou, Chih-Young Hung, Jennifer Shu Jen Lin, Peter Chu

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

7 Scopus citations

Abstract

Perishable products are commonly seen in inventory management. By allowing shortages and backlogging, the impact on the cost from the decay of the products can be balanced out. In a recent paper published in Computers and Industrial Engineering [P.L. Abad, Optimal lot size for a perishable good under conditions of finite production and partial backordering and lost sale, Comput. Ind. Eng. 38 (2000) 457-465] considered a problem in such context. However, his algorithm was incomplete due to flaws in his solution procedure. The purpose of this note is to explore the same production inventory models with a mixture of partial backordering and lost sales for deteriorated items. We find the criteria for the optimal solution for different cases and derive a formulated minimum value. By theoretical analysis, we develop a few lemmas to reveal parameter effects and optimal solution procedure. The solutions are illustrated by solving the same examples from Abad's paper to illustrate the accuracy and completeness of our procedure.

Original languageEnglish
Pages (from-to)1758-1768
Number of pages11
JournalApplied Mathematical Modelling
Volume32
Issue number9
DOIs
StatePublished - 1 Sep 2008

Keywords

  • Backorder
  • Inventory
  • Lost sales
  • Perishable items

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