Planning Horizon for Production Inventory Models with Production Rate Dependent on Demand and Inventory Level
This paper discusses why the selection of a finite planning horizon is preferable to an infinite one for a replenishment policy of production inventory models. In a production inventory model, the production rate is dependent on both the demand rate and the inventory level. When there is an exponent...
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| Format: | Article |
| Language: | English |
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Wiley
2013-01-01
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| Series: | Journal of Applied Mathematics |
| Online Access: | http://dx.doi.org/10.1155/2013/961258 |
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| _version_ | 1850220494423326720 |
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| author | Jennifer Lin Henry C. J. Chao Peterson Julian |
| author_facet | Jennifer Lin Henry C. J. Chao Peterson Julian |
| author_sort | Jennifer Lin |
| collection | DOAJ |
| description | This paper discusses why the selection of a finite planning horizon is preferable to an infinite one for a replenishment policy of production inventory models. In a production inventory model, the production rate is dependent on both the demand rate and the inventory level. When there is an exponentially decreasing demand, the application of an infinite planning horizon model is not suitable. The emphasis of this paper is threefold. First, while pointing out questionable results from a previous study, we propose a corrected infinite planning horizon inventory model for the first replenishment cycle. Second, while investigating the optimal solution for the minimization problem, we found that the infinite planning horizon should not be applied when dealing with an exponentially decreasing demand. Third, we developed a new production inventory model under a finite planning horizon for practitioners. Numerical examples are provided to support our findings. |
| format | Article |
| id | doaj-art-7b0a19df9b4341d9a274cdbf42b5da00 |
| institution | OA Journals |
| issn | 1110-757X 1687-0042 |
| language | English |
| publishDate | 2013-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Journal of Applied Mathematics |
| spelling | doaj-art-7b0a19df9b4341d9a274cdbf42b5da002025-08-20T02:07:02ZengWileyJournal of Applied Mathematics1110-757X1687-00422013-01-01201310.1155/2013/961258961258Planning Horizon for Production Inventory Models with Production Rate Dependent on Demand and Inventory LevelJennifer Lin0Henry C. J. Chao1Peterson Julian2Department of Transportation Logistics & Marketing Management, Toko University, Chiayi 61363, TaiwanDepartment of Traffic Science, Central Police University, Taoyuan 33334, TaiwanDepartment of Traffic Science, Central Police University, Taoyuan 33334, TaiwanThis paper discusses why the selection of a finite planning horizon is preferable to an infinite one for a replenishment policy of production inventory models. In a production inventory model, the production rate is dependent on both the demand rate and the inventory level. When there is an exponentially decreasing demand, the application of an infinite planning horizon model is not suitable. The emphasis of this paper is threefold. First, while pointing out questionable results from a previous study, we propose a corrected infinite planning horizon inventory model for the first replenishment cycle. Second, while investigating the optimal solution for the minimization problem, we found that the infinite planning horizon should not be applied when dealing with an exponentially decreasing demand. Third, we developed a new production inventory model under a finite planning horizon for practitioners. Numerical examples are provided to support our findings.http://dx.doi.org/10.1155/2013/961258 |
| spellingShingle | Jennifer Lin Henry C. J. Chao Peterson Julian Planning Horizon for Production Inventory Models with Production Rate Dependent on Demand and Inventory Level Journal of Applied Mathematics |
| title | Planning Horizon for Production Inventory Models with Production Rate Dependent on Demand and Inventory Level |
| title_full | Planning Horizon for Production Inventory Models with Production Rate Dependent on Demand and Inventory Level |
| title_fullStr | Planning Horizon for Production Inventory Models with Production Rate Dependent on Demand and Inventory Level |
| title_full_unstemmed | Planning Horizon for Production Inventory Models with Production Rate Dependent on Demand and Inventory Level |
| title_short | Planning Horizon for Production Inventory Models with Production Rate Dependent on Demand and Inventory Level |
| title_sort | planning horizon for production inventory models with production rate dependent on demand and inventory level |
| url | http://dx.doi.org/10.1155/2013/961258 |
| work_keys_str_mv | AT jenniferlin planninghorizonforproductioninventorymodelswithproductionratedependentondemandandinventorylevel AT henrycjchao planninghorizonforproductioninventorymodelswithproductionratedependentondemandandinventorylevel AT petersonjulian planninghorizonforproductioninventorymodelswithproductionratedependentondemandandinventorylevel |