An inventory model with a random product life cycle and taking account of time-value of money

• Main Authors: Wei-Che Chang, 張維哲
• Other Authors: Hui-Ming Wee
• Format: Others
• Language: en_US
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/yfk398

碩士 === 中原大學 === 工業工程研究所 === 93 === For decades, the Economic Production Quantity (EPQ) model and its variations have received much attention from researchers. However, EPQ models incorporating a random product life cycle and the time-value of money have not been researched much. The main purpose of this paper is to develop an EPQ model with a random product life cycle, and considers the time-value of money effect and inflation. We consider the normal distribution as a product life cycle besides the exponential distribution. Furthermore, we also consider deteriorating item inventory and time varying unit production cost. Golden Section Search, a kind of One-Dimensional Search approach, is used to solve the optimal solution of the inventory model. A sensitivity analysis has been conducted to show how certain parameters affect the enterprise’s performance.