An inventory model with both stock-dependent demand rate and stock-dependent holding cost rate

Chih-Te Yang

International Journal of Production Economics, 2014, vol. 155, issue C, 214-221

Abstract: In this paper, we develop an inventory model under a stock-dependent demand rate and stock-dependent holding cost rate with relaxed terminal conditions. Shortages are allowed and partially backlogged in the model. The purpose of this study is to determine the optimal order quantity and the ending inventory level such that the total profit per unit time is maximized for the retailer. We first establish a proper model for a mathematical formulation. Then we develop several theoretical results and provide the decision-maker with an algorithm to determine the optimal solution. Finally, numerical examples are provided to illustrate the solution procedure, and a sensitivity analysis of the optimal solution with respect to major parameters is carried out.

Keywords: Inventory; Stock-dependent demand; Stock-dependent holding cost; Relaxed terminal conditions (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0925527314000188
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:155:y:2014:i:c:p:214-221

DOI: 10.1016/j.ijpe.2014.01.016

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 ().