Research Reports from the Department of Operations
Document Type
Report
Publication Date
4-1-1968
Abstract
A stochastic single product convex cost inventory problem is considered in which there is a probability, πj, that the product will become obsolete in the future period j. In an interesting paper Barankin and Denny essentially formulate the model but do not describe some of its interesting and relevant ramifications. This paper is written not only to bring out some of these ramifications but also to describe some computational results using this model. The computational results show that if obsolescence is a distinct possibility in the near future, it is quite important that the probabilities of obsolescence be incorporated into the model before computing the optimal policies.
Keywords
Operations research, Inventory control--Mathematical models, Stochastic processes, Production planning
Publication Title
Technical Memorandums from the Department of Operations, School of Management, Case Western Reserve University
Issue
Technical memorandum no. 104
Rights
This work is in the public domain and may be freely downloaded for personal or academic use
Recommended Citation
Pierskalla, William P., "An Inventory Problem with Obsolescence" (1968). Research Reports from the Department of Operations. 265.
https://commons.case.edu/wsom-ops-reports/265