Title: A repetitive forward rolling technique for inventory policy with non-linear increasing demand pattern considering shortage

Authors: Ririn Diar Astanti; Huynh Trung Luong

Addresses: Department of Industrial Engineering, Universitas Atma Jaya Yogyakarta, Jl. Babarsari 43, Yogyakarta 55244, Indonesia ' Industrial and Manufacturing Engineering Field of Study, School of Engineering and Technology, Asian Institute of Technology, P.O. Box 4 Klong Luang Pathumthani 12120, Thailand

Abstract: Demand of any particular products might not be stable, e.g., in the growth stage of the product life cycle where demand of most products might possess increasing functional form. The famous EOQ model is, then, not appropriate in this situation, since it was developed under the assumption of constant demand pattern. The research in this paper is focused on inventory decision problem with non-linear increasing demand pattern and considering shortage, by proposing a heuristic method based on repetitive forward rolling technique for determining the inventory policy for this case, i.e., the replenishment times and shortage points. The proposed technique is developed in such a way that demands during a predefined planning horizon are exactly met. Numerical experiments that are conducted to illustrate the applicability of the proposed technique show that it can provide competitive results when it is compared with other proposed techniques in the past researches.

Keywords: inventory policy; nonlinear demand patterns; increasing demand rate; heuristics; repetitive forward rolling; replenishment times; shortage points.

DOI: 10.1504/IJMOR.2014.059524

International Journal of Mathematics in Operational Research, 2014 Vol.6 No.2, pp.217 - 235

Received: 05 Mar 2012
Accepted: 26 Nov 2012
Published online: 28 Jun 2014 *

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