EOQ and EPQ Production-Inventory Models with Variable Holding Cost: State-of-the-Art Review

Alfares, Hesham K.; Ghaithan, Ahmed M.

doi:10.1007/s13369-018-3593-4

Cited by 40 publications

(19 citation statements)

References 80 publications

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“…Sarkar et al [50] studied the influence of the variable production rate in a supply chain management system with time-dependent holding cost. Moreover, a two-stage manufacturing system is investigated under the impact of the variable production rate by [51]. The study infers that the selection of variable production rates increases the smoothness of work-flow in a firm as it gives flexibility in a work-in-process inventory at different working stages and hence improves the overall production planning of the manufacturing system.…”

Section: Smart Production Systemmentioning

confidence: 99%

An Automated Smart EPQ-Based Inventory Model for Technology-Dependent Products under Stochastic Failure and Repair Rate

Asghar

Kim

2020

Symmetry

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With the ever-growing technology development, high-tech products such as mobile phones, computers, electromagnetic devices and smart devices are facing high design and production modification requirements with relatively shorter life cycles. For instance, every forthcoming smart phone goes out of production in a shorter period after its launch, followed by its next generation. The design of high-tech products requires high investments in smart and automated manufacturing technology to ensure higher production efficiency. For high-tech products with short life spans, the manufacturing performance-quality variable is an important design parameter that affects system reliability, production efficiency and manufacturing costs. Major performance-quality factors of a manufacturing system which affect productivity and reliability of the manufacturing process are discussed in this research. The study investigates an integrated smart production maintenance model under stochastic manufacturing reliability for technology dependent demand and variable production rate. The smart unit production cost is a function of manufacturing reliability and controllable production rate, as a manufacturing system can be operated at different production rates within designed limits μ ϵ [ μ m i n , μ m a x ] . Manufacturing reliability is increased through investment in smart manufacturing technology and resources. The integrated smart production maintenance model is formulated under general failure and repair time distributions and the optimal production maintenance policy is investigated under specific failure and repair time distributions. A mathematical model is developed to optimize the manufacturing quality-performance parameter, variable production rate, per unit technology investment and production lot size. The total cost function is optimized through the Khun–Tucker method. The mathematical model is also validated with numerical analysis, comparative study, and sensitivity analysis for model key parameters.

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Section: Smart Production Systemmentioning

confidence: 99%

An Automated Smart EPQ-Based Inventory Model for Technology-Dependent Products under Stochastic Failure and Repair Rate

Asghar

Kim

2020

Symmetry

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“…The classic EOQ concept equation 1 is born from the minimum intersection of the costs of maintaining the inventory with ordering costs; in this way, it can be assumed that it is an optimal value of units to be requested at the minimum possible cost [29]. * (1) Where: Q* = economic order quantity, D = forecasted demand in the planning horizon, Co = ordering cost per unit in the planning horizon, Ch = holding cost per unit in the planning horizon.…”

Section: Abc Classification and Eoq Modelmentioning

confidence: 99%

Forecasting Demand Improvement for Replenishment in a Retail Painting Company

Briseño-Oliveros¹,

Guzmán-García²,

Cano‐Olivos³

et al. 2019

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This case study was developed in a retail painting company; the main objective is to reach a higher cash flow for assuring the fulfilment of the demand with a 95% service level. Currently, supply chain faces to multiples competitors so familiar business have to improve the logistics processes for remaining in local, national and international markets. Through the ABC-classification, the product portfolio was classified for choosing the products with more significative impact. Forecasts techniques may obtain data with higher accuracy in the order preparation. For this research, a seasonal model is functional, since the demand tends to have a similar behaviour year by year and month by month. Seasonal demand model was used to find specific products that might not fit for ordering minimum quantities which might exceed the forecasted demand. On the other hand, classic EOQ model considers the value of the inventory and demand forecast, which demonstrates that the performance of the supply chain could improve considerably. Therefore, an accurate estimate can reduce inventory costs in each of the periods, satisfying customer demand, by at least 14%. EOQ model should apply to all products for reducing the investment in slow-moving stock and improving the inventory for those highly demanded products which can generate flexibility to embrace market complexity and meet customer expectations. As a future study, the company can develop a strategy to reduce non-rotating inventory with more accurately, what and when they will sell specific products.

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“…(Tajbakhsh, Lee Zolfaghari, 2010;Rezaei, Salimi, 2012;Chua, Chung, Lanc, 1998;Karimi et. al.,2019;Alfares & Ghaithan, 2019) present the cases of determining optimal quantities based on the EOQ rule to ensure reliability of supply. In turn (Krzyżaniak, 2008;Pando et.…”

Section: Own Researchmentioning

confidence: 99%

Management of the Size of the Supply Under the Conditions of Inflation

Ślaski

2019

New Trends in Production Engineering

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The publication describes two ways of shopping, taking into account the CPI (Consumer Price Index) inflation rate. In the first case, changes in the sales price are made in a continuous manner in accordance with the inflation rate, and therefore it is better to make larger purchases. In the second case, it is better to carry out smaller purchases, because it is characterized by one-time adjustment of sales prices to the entire purchased a lot of goods. Both cases were verified based on the Solver tool, using non-linear, integer-based optimization. The final result was to determine the optimal purchase quantities with the minimum inventory costs.

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EOQ and EPQ Production-Inventory Models with Variable Holding Cost: State-of-the-Art Review

Cited by 40 publications

References 80 publications

An Automated Smart EPQ-Based Inventory Model for Technology-Dependent Products under Stochastic Failure and Repair Rate

An Automated Smart EPQ-Based Inventory Model for Technology-Dependent Products under Stochastic Failure and Repair Rate

Forecasting Demand Improvement for Replenishment in a Retail Painting Company

Management of the Size of the Supply Under the Conditions of Inflation

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