Optimal batch ordering over a finite planning horizon

Abdullah O. Alsuwainea, Lakdere Benkherouf and Suresh Sethi

International Journal of Operational Research, 2014, vol. 19, issue 4, 385-406

Abstract: This paper is concerned with finding an optimal inventory policy for a finite horizon, two-stage inventory model. In this model, products may be manufactured in two stages. The first stage uses raw material from an external supplier and the second stage uses raw material from defective items that were returned and repaired during the first stage. The problem of jointly finding the optimal procurement of raw materials and the production plan is formulated as a mixed-integer, non-linear programming problem. A solution procedure for the problem is proposed. The suggested procedure is based on the work of Benkherouf and Gilding (2009).

Keywords: inventory modelling; optimal inventory policy; finite horizon models; batch ordering; finite planning horizon; optimisation; materials procurement; production planning; mixed-integer nonlinear programming; MINLP. (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijores:v:19:y:2014:i:4:p:385-406

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