Title: Two techniques for solving nonlinear decreasing demand inventory system with shortage backorders

Authors: Ririn Diar Astanti; The Jin Ai; Hunyh Trung Luong; Hui-Ming Wee

Addresses: Department of Industrial Engineering, Universitas Atma Jaya Yogyakarta, Jl. Babarsari 43, Yogyakarta 55281, Indonesia ' Department of Industrial Engineering, Universitas Atma Jaya Yogyakarta, Jl. Babarsari 43, Yogyakarta 55281, Indonesia ' Industrial and Manufacturing Engineering, School of Engineering and Technology, Asian Institute of Technology, P.O. Box 4, Klong Luang, Pathumthani 12120, Thailand ' Department of Industrial and Systems Engineering, Chung Yuan Christian University, 200 Chung Pei Road, Chung Li District, Taoyuan City, 32023, Taiwan

Abstract: This paper considers an inventory model with nonlinear decreasing demand and shortage backorders. Two techniques are proposed to solve the problem. The first heuristic technique is based on cost reduction concept and the second one applies the particle swarm optimisation algorithm. The results from the two proposed techniques for variable replenishment interval policies are compared with those of fixed replenishment interval policy. The computational experiments show that the total cost resulted from variable replenishment interval policy is smaller than the fixed replenishment interval policy, especially when the demand rate is highly nonlinear.

Keywords: inventory policy; nonlinear decreasing demand; particle swarm optimisation; PSO; shortage backorders; fixed replenishment; variable replenishment.

DOI: 10.1504/IJOR.2018.089129

International Journal of Operational Research, 2018 Vol.31 No.2, pp.198 - 223

Received: 22 Apr 2014
Accepted: 09 Apr 2015

Published online: 08 Jan 2018 *

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