Analysis of an inventory system with exponential partial backordering

San-José, Luis A.; Sicilia, Joaquı́n; García-Laguna, Juan

doi:10.1016/j.ijpe.2004.10.012

Cited by 69 publications

(24 citation statements)

References 16 publications

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“…A common characteristic of this model is the assumption that the percentage of orders arriving during the stockout period that will be backordered is exogenously determined. Montgomery et al [4],Rosenberg [5],Park [6],San Joséet al [7,8]and Pentico and Drake [9]all developed EOQ models with a constant backordering percentage. Montgomery et al and San Joséet al also developed models in which the backordering percentage depends on the time to replenishment.…”

Section: Literature Reviewmentioning

confidence: 99%

A Partial Backlogging Inventory Model with Time-Varying Demand During Shortage Period

Chen¹,

Zhuo²

2010

IJISA

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Abstract-Harris's classic square root economic order quantity (EOQ) model forms the basis for many other models that relax one or more of its assumptions. A key assumption of the basic EOQ model is that stockouts are not permitted. Due to the excess demands, stock-out situations may arise occasionally. Sometimes, shortages are permitted and they are backordered and satisfied in the very next replenishment. Therefore the objective of this paper is to develop a partial backlogging inventory model, and proposes a new algorithm to minimize the total cost, at the same time also propose the prediction method and algorithm of ordering period. Finally, a practical example of the numerical analysis is given.

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Section: Literature Reviewmentioning

confidence: 99%

A Partial Backlogging Inventory Model with Time-Varying Demand During Shortage Period

Chen¹,

Zhuo²

2010

IJISA

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“…(Goyal et al, 2001;Bakker et al, 2012). Other research areas include, for example, models with partial backlogging investigated by (San José et al, 2005;San José et al, 2006). In their paper , the authors expanded on the publication (Deng et al, 2007) by introducing a general ramp type demand rate.…”

Section: Introductionmentioning

confidence: 99%

Order Management System Proposal Using Inventory Balance Equation with Non-continuous Replenishment

Novotná

Šustrová

2017

Period. Polytech. Soc. Man. Sci.

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The purpose of this paper is to present an inventory balance model including an order-up-to IntroductionEvery organization, whether profitable or non-profitable one, manage certain assets. Managing and exploiting these assets for corporate purposes is an inseparable part of managerial work at all levels of management. The most significant component of current assets is inventory, which is typical for its perishability.The purpose of this paper is to introduce a model of inventory balance equation extended by an order up to replenishment policy with partial backlogging, described by means of an ordinary differential equation with delayed argument in a situation when goods are not replenished constantly, but only at pre-specified times.The economic theory that forms the essential basis for the model is explained in the introductory section and serves as a basis for the designing of the model. Methods of analysis, synthesis and differential calculus are also used. The equation of the model is then solved using the modern theory of so-called functional differential equations, a highly special part of which is the theory of linear differential equations with delayed arguments.The scientific aim is a solvability verification of such a problem using the theory of functional differential equations. The solution is demonstrated on a specific example in the application part. Computer simulations help to present the behaviour of the model in different situations. The graphical presentation was created in Maple system.Our findings are that due to the exact expression of the model and the availability of suitable software, it is possible to assess the effect of any changes in parameters.

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“…Weng [6] considered a backorder case in which all the excess demand is backlogged but some of the excess demand may not be satisfied. San José et al [7] introduced an inventory model with partial backlogging, where the unsatisfied demand is partially backlogged according to an exponential function and developed a general approach for finding the optimal policy to this model. Lodree [8] studied a two-level supply chain within a newsvendor framework which combines backorders and lost sales and also allows the retailer to start emergency replenishment.…”

Section: Introductionmentioning

confidence: 99%

Opportunity Loss Minimization and Newsvendor Behavior

Yan

Chan

2017

Discrete Dynamics in Nature and Society

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To study the decision bias in newsvendor behavior, this paper introduces an opportunity loss minimization criterion into the newsvendor model with backordering. We apply the Conditional Value-at-Risk (CVaR) measure to hedge against the potential risks from newsvendor's order decision. We obtain the optimal order quantities for a newsvendor to minimize the expected opportunity loss and CVaR of opportunity loss. It is proven that the newsvendor's optimal order quantity is related to the density function of market demand when the newsvendor exhibits risk-averse preference, which is inconsistent with the results in Schweitzer and Cachon (2000). The numerical example shows that the optimal order quantity that minimizes CVaR of opportunity loss is bigger than expected profit maximization (EPM) order quantity for high-profit products and smaller than EPM order quantity for lowprofit products, which is different from the experimental results in Schweitzer and Cachon (2000). A sensitivity analysis of changing the operation parameters of the two optimal order quantities is discussed. Our results confirm that high return implies high risk, while low risk comes with low return. Based on the results, some managerial insights are suggested for the risk management of the newsvendor model with backordering.

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Analysis of an inventory system with exponential partial backordering

Cited by 69 publications

References 16 publications

A Partial Backlogging Inventory Model with Time-Varying Demand During Shortage Period

A Partial Backlogging Inventory Model with Time-Varying Demand During Shortage Period

Order Management System Proposal Using Inventory Balance Equation with Non-continuous Replenishment

Opportunity Loss Minimization and Newsvendor Behavior

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