Economic growing quantity

Abolfazl Gharaei and Eman Almehdawe

International Journal of Production Economics, 2020, vol. 223, issue C

Abstract: The essence of some items is continuously growing and gaining weight over time. These are known as growing items, which their weights and values increase over time. This paper provides a new generation of inventory models, entitled Economic Growing Quantity (EGQ), which is designed by focusing on growing items of agricultural industries such as fisheries, poultry, and livestock. Our EGQ inventory model considers the probability density functions of survival and mortality for a growing item. It also considers the growth functions of live and dead grown items. Accordingly, the total cost for EGQ model consists of the costs of purchasing process, the disposal cost of dead items, the holding cost, the feeding cost, and the setup costs for both the live and the dead items. Our goal is to determine the optimal economic growth/slaughter cycle and the economic growing quantity in order to minimize the total costs. Subsequently, we optimize the weight of slaughtering, the Utility of Growth Functions (UGF), and other important performance metrics of the system. The applicability and validity of our model is demonstrated based on numerical examples of the poultry industry. The results of sensitivity analyses recommend some strategic implications and insights for the managers of growing items.

Keywords: Growing items; Economic order quantity; Agriculture; Inventory management; Survival functions; Mortality functions (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:223:y:2020:i:c:s092552731930338x

DOI: 10.1016/j.ijpe.2019.107517

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