Title: A forward with backward inventory policy algorithm for nonlinear increasing demand and shortage backorders

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

Addresses: Department of Industrial Engineering, Universitas Atma Jaya Yogyakarta, Yogyakarta, 55281, Indonesia ' Industrial and Manufacturing Engineering Field of Study, Asian Institute of Technology, Pathumthani, 12120, Thailand ' Department of Industrial and Systems Engineering, Chung Yuan Christian University, Chung Li, 320, Taiwan ' Department of Industrial Engineering, Universitas Atma Jaya Yogyakarta, Yogyakarta, 55281, Indonesia

Abstract: The traditional inventory policies have been developed for constant demand processes. In reality, demand is not always stable; it might have an increasing pattern. In this paper, a forward with backward inventory policy algorithm is developed to determine the operational parameters of an inventory system with a nonlinear increasing demand rate, shortage backorders and a finite planning horizon. Numerical experiments are also conducted to compare the results with the existing techniques and to illustrate the applicability of the proposed technique.

Keywords: inventory; nonlinear increasing demand pattern; shortage backorders; forward with backward inventory policy algorithm.

DOI: 10.1504/IJMOR.2018.095487

International Journal of Mathematics in Operational Research, 2018 Vol.13 No.4, pp.492 - 512

Received: 23 Mar 2016
Accepted: 27 Apr 2017
Published online: 08 Oct 2018 *

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