Inventory model with stock-level dependent demand rate and variable holding cost
Inventory model with stock-level dependent demand rate and variable holding cost
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DOI:
10.1016/j.ijpe.2006.12.013
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发表时间:
2007-07
影响因子:
12
通讯作者:
Hesham K. Alfares
中科院分区:
文献类型:
--
作者:
Hesham K. Alfares
Inventory models in which the demand rate depends on the inventory level are based on the common real-life observation that greater product availability tends to stimulate more sales. Previous models incorporating inventory-level dependent demand rate assume that the holding cost is constant for the entire inventory cycle. This paper considers the inventory policy for an item with a stock-level dependent demand rate and a storage-time dependent holding cost. The holding cost per unit of the item per unit time is assumed to be an increasing function of the time spent in storage. Two time-dependent holding cost step functions are considered: Retroactive holding cost increase, and incremental holding cost increase. Procedures are developed for determining the optimal order quantity and the optimal cycle time for both cost structures.