Research Article | OPEN ACCESS
Lead Time Reduction in Budget and Storage Space Restricted Lot Size Reorder Point Inventory Models with Controllable Negative Exponential Backorder Rate
A. Gholami-Qadikolaei, M.A. Sobhanallahi and A. Mirzazadeh
Department of Industrial Engineering, Kharazmi University, Tehran, Iran
Research Journal of Applied Sciences, Engineering and Technology 2013 5:1557-1567
Received: July 07, 2012 | Accepted: August 08, 2012 | Published: February 11, 2013
Abstract
This study presents the mixed backorder and lost sales inventory models involving four variables; order quantity, lead time, safety factor (a discrete variable) and backorder rate. A controllable negative exponential backorder rate is considered in the proposed model. In the real market, as unsatisfied demands occur, the longer length of lead time is, the smaller proportion of backorder rate would be. Considering this reason, backorder rate is dependent on the length of lead time through the amount of shortages. The negative exponential lead time crashing cost is considered in this study. Today, the cost of land acquisition is high in most of the countries and one of the main concerns of inventory managers is to ensure that the maximum permissible storage space is enough when an order arrives. Hence, a random storage space constraint is considered, since, the inventory level is random when an order arrives. So, in this case, a chance-constrained programming technique is used to make it crisp. Moreover, another significant concern of inventory managers is how to control the maximum investment in the inventory. This study assumes the purchasing cost is paid at the time of order placing. Considering this assumption, a budget constraint is also added to the model in order to managing the maximum inventory investment. The lead time demand, first, follows a normal distribution and then, relaxes the distribution function assumption by only assuming the mean and variance of lead time demand are known and applies the minimax distribution free procedure to solve the problem. Furthermore, a numerical example is also given to illustrate the models and solution procedures.
Keywords:
Chance-constrained programming technique, inventory constraints, inventory system, lead time, partial backlogging, stochastic,
Competing interests
The authors have no competing interests.
Open Access Policy
This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made.
Copyright
The authors have no competing interests.
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ISSN (Online): 2040-7467
ISSN (Print): 2040-7459 |
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