Optimal inventory policy of deteriorating products for intermediary firms

• Main Authors: Yi-Xiang Liao, 廖益祥
• Other Authors: Cheng-Kang Chen
• Format: Others
• Language: en_US
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/84745984373457634981

碩士 === 國立臺灣科技大學 === 資訊管理系 === 93 === In a supply chain logistics system, the function of an intermediary firm is to purchase products and to sell those purchased products to the public or to other firms. In this paper, we incorporate the deteriorating nature of the product into two deterministic inventory models using two different optimization criterions to mathematically formulate the proposed problem for the intermediary firm. From the mathematical formulation, we first show that there exists a unique optimal cycle length for each model such that the optimization criterion for each model is maximized. Then, we derive an approximate solution and a lower / upper bound for the optimal cycle length. Based on these results, an efficient algorithm is provided to search for the optimal cycle length for each model. Finally, a numerical example in each model is presented to illustrate the features of the proposed problem.