Issue: 2013/Vol.23/No.1, Pages 63-74
SOLVING SOME DETERMINISTIC FINITE HORIZON INVENTORY MODELS
Pritibhushan Sinha
Cite as: P. Sinha. Solving some deterministic finite horizon inventory models. Operations Research and Decisions 2013: 23(1), 63-74. DOI 10.5277/ord130105
Abstract
Two single-item, deterministic, continuous, finite horizon inventory models having no shortage have been considered. A demand rate function, which is relatively general, for the item has been assumed. In the first model, units of the item do not deteriorate; while in the second units deteriorate in a constant fraction rate. Some optimality conditions are shown for the models. Based on these properties, single variable search methods have been described to obtain globally optimal solutions. Numerical experiments indicate that the methods yield acceptable solutions within small time and are suitable for practical applications.
Keywords: inventory, finite horizon, globally optimal solution, search method
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