An Optimization Method for Inventory Replenishment Policy Under Deterministic Demand - Two Equations Model

• Main Authors: Wen-Yang Lo, 羅文陽
• Other Authors: Rong-Kwei Li
• Format: Others
• Language: en_US
• Published: 2000
• Online Access: http://ndltd.ncl.edu.tw/handle/27995956566462242254

博士 === 國立交通大學 === 工業工程與管理系 === 88 === Many constraints such as constant demand, without deterioration, etc., must be considered when applying the conventional EOQ model. But in an actual situation, the demand rate of a product usually is a function of time and in many actual inventory systems such as food items, photo films, chemicals, electronics components and radioactive substances, the effect of deterioration is not negligible. Since the simplicity of the EOQ model, it can not completely satisfy the needs in some practical inventory systems, therefore, many approaches have been proposed to optimize the replenishment policy for some more realistic inventory system. But as a whole, due to the complexity of the replenishment problem, most of these approaches belong to approximate approaches, only few approaches could provide the analytical solution under a well-defined situation. Under the background, the main objective of this research is to develop a new optimization method, called “Two Equations Model”, for replenishment policy under deterministic demand. This research firstly focuses on the no-shortage replenishment problem with a log-concave demand to develop such an optimization method. In addition, this research applies the Two Equations Model to a no-shortage replenishment problem with a non-linear trend in demand, and a no-shortage replenishment problem for deteriorating items with a linear trend in demand to verify the expandable potentiality of the Two Equations Model. The optimality of the Two Equations Model is also proved in this research for each problem of replenishment policy.