Research Reports from the Department of Operations
Document Type
Report
Publication Date
1-1-1966
Abstract
We are concerned with generalizations of the inventory depletion model where the inventory deteriorates in time as it remains on the shelf. Earlier authors writing on this subject have placed many restrictive assumptions on the model. The assumption of one demand source withdrawing items from the stockpile is removed and the case of several demand sources is considered. Next, it is assumed that there is a constant penalty cost, p, each time an item is issued. p can be described as an installation or work stoppage cost. Finally, the assumption that the field life, L(S), is a concave or convex function is removed. A more general type of function is considered. We let L(S) be a concave non-increasing function for S≤t. When L(S) has this form, it provides a good approximation to the general decreasing S-shaped curve. In all of the foregoing cases optimal policies or bounds on the optimal policies are presented.
Keywords
Operations research, Inventory control, Decision making--Mathematical models, Mathematical optimization, Industrial management
Publication Title
Technical Memorandums from the Department of Operations, School of Management, Case Western Reserve University
Issue
Technical memorandum no. 44
Rights
This work is in the public domain and may be freely downloaded for personal or academic use
Recommended Citation
Pierskalla, William P., "Optimal Issuing Policies in Inventory Management -- I" (1966). Research Reports from the Department of Operations. 390.
https://commons.case.edu/wsom-ops-reports/390