An extension of partial backordering EOQ with correlated demand caused by cross-selling considering multiple minor items

Ren-Qian Zhang

European Journal of Operational Research, 2012, vol. 220, issue 3, 876-881

Abstract: Zhang et al. (2011) proposed the partial backordering EOQ with correlated demand caused by cross-selling, where a portion of the sales of a minor item is associated with those of a major item. In this paper, we extend their model to make it more applicable to dealing with the inventory replenishment problem for multiple associated items. We formulate the model as a mixed integer nonlinear programming (MINLP) problem and develop a global optimum search procedure with the fill rate given. We further employ a one-dimensional search on the fill rate to obtain the minimum total inventory cost within a predetermined precision, which enjoys polynomial computational complexity.

Keywords: EOQ; Partial backordering; Correlated demand; Cross-selling; Multiple minor items (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:220:y:2012:i:3:p:876-881

DOI: 10.1016/j.ejor.2012.02.015

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