Determining Optimal Order Quantity per Procurement Cycle with a Given Length for a Consumption Part subject to Obsolescence Phenomenon

• Main Authors: Hui-Ching Hsu, 許惠晴
• Other Authors: Gwo-Ji Sheen
• Format: Others
• Language: en_US
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/69530525083636342225

碩士 === 國立中央大學 === 工業管理研究所 === 97 === Obsolescent inventory is a critical concern in some industries, especially in the environment where the rapid change of technology and market. In spite of the significance of the increasing speed of technological change, there are now few prescriptive studies of the control of obsolescent inventory. The aim of this study is develop a joint rate function of socket pin obsolescence and propose a model to determine the order quantity at any time point to maximize the total profit per procurement cycle with a given length. Consider the case in this research, the obsolescent probability of consumption part-socket pin is effect by two conditions. One is phase out of IC, the other is engineering change of socket pin. We assume the two conditions follow Weibull distribution. Then, joint above two independent distribution to be obsolescent hazard rate. Use nonhomogeneous Poisson process formulation to obtain the interval probability of obsolescence. Furthermore, propose a decision algorithm that solves optimally the procurement policy problem taking into obsolescence problem. The ordering strategy should take into the constant expected demand during the life cycle, relevant costs and revenue. to maximize the profit. Final, we do sensitivity analysis and numerical analysis with the particular parameters finally.