Inflation and the optimal inventory replenishment schedule within a finite planning horizon

Brian H. Gilding

European Journal of Operational Research, 2014, vol. 234, issue 3, 683-693

Abstract: The subject of this paper is the problem of finding the optimal replenishment schedule for an inventory, subject to time-dependent demand and deterioration, within a finite time planning horizon. It is shown that taking inflation into account has a profound effect on the solution of the problem. For instance, there is a critical number of replenishment periods, in excess of which the optimal schedule is characterized by the inclusion of token orders at the end of the planning horizon. This and other conclusions, obtained via a careful mathematical analysis of the problem, rectify those of earlier studies.

Keywords: Inventory; Finite time planning horizon; Optimal schedule; Demand; Deterioration; Inflation (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:234:y:2014:i:3:p:683-693

DOI: 10.1016/j.ejor.2013.11.001

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