Title: Optimal lot sizing for deteriorating items with triangle-shaped demand and uncertain lead time

Authors: Ping-Hui Hsu, Hui-Ming Teng, Hui-Ming Wee

Addresses: Department of Business Administration, De Lin Institute of Technology, Tu-Cheng, Taipei, Taiwan. ' Department of Business Administration, Chihlee Institute of Technology, Panchiao, Taipei, Taiwan; Department of Industrial and Systems Engineering, Chung Yuan Christian University, Chungli, Taiwan. ' Department of Industrial and Systems Engineering, Chung Yuan Christian University, Chungli, Taiwan

Abstract: The ordering policy for retailers and the suppliers| system are influenced by lead time and deterioration. In this study, we consider deteriorating items with triangle-shaped demand and uncertain lead time. The triangle-shaped demand has the characteristic of increasing demand during the introduction season followed by decreasing demand immediately after the peak season. An algorithm is developed to derive a replenishment policy such that the expected unit time profit is maximised. A numerical analysis of the coordinated and noncoordinated policies are also presented for comparison. [Submitted 08 January 2008; Revised 15 May 2008; Revised 21 September 2008; Accepted 29 September 2008]

Keywords: deteriorating inventory; uncertain lead times; triangle-shaped demand; coordination; lot sizing; optimisation.

DOI: 10.1504/EJIE.2009.025047

European Journal of Industrial Engineering, 2009 Vol.3 No.3, pp.247 - 260

Published online: 10 May 2009 *

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