Preservation technology investment for deteriorating inventory

P.H. Hsu, H.M. Wee and H.M. Teng

International Journal of Production Economics, 2010, vol. 124, issue 2, 388-394

Abstract: The objective of this study is to develop a deteriorating inventory policy when the retailer invests on the preservation technology to reduce the rate of product deterioration. A solution procedure is presented to determine an optimal replenishment cycle, shortage period, order quantity and preservation technology cost such that the total profit per unit time is maximized. A numerical example and sensitivity analysis are presented to illustrate the model.

Keywords: Preservation; technology; Deteriorating; inventory; Capital; constraint (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (49)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0925-5273(09)00437-X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:124:y:2010:i:2:p:388-394

Access Statistics for this article

International Journal of Production Economics is currently edited by Stefan Minner

More articles in International Journal of Production Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().