Optimal joint replenishment policy for multiple non-instantaneous deteriorating items. Issue 16 (18th August 2017)

• Record Type: Journal Article
• Authors: Ai, Xue-Yi; Zhang, Jin-Long; Wang, Lin
• Is Part Of: International journal of production research. Volume 55:Issue 16(2017)
• Page Start: 4625
• Page End: 4642
• Publication Date: 2017-08-18
• Subjects: inventory management -- optimisation -- heuristics -- joint replenishment -- non-instantaneous deterioration; Factory management -- Periodicals; 658.57
• DOI: 10.1080/00207543.2016.1276306
• Languages: English
• ISSNs: 0020-7543

Abstract

Abstract : In this paper, we deal with the problem of determining the optimal economic operating policy when a number of non-instantaneous deteriorating items are jointly replenished. We establish a multi-item joint replenishment model for non-instantaneous deteriorating items under constant demand rate allowing full backlogging. This problem is challenging, in particular, the cost function is a piecewise function with exponential parts, which makes the problem more complicated. To solve this problem, an approximation method is used to simplify the objective function and a bound-based heuristic algorithm is developed to solve the model. Numerical examples illustrate the effectiveness of the proposed method and the quality of the approximation. Experimental results on a real-life case study show that the proposed model can achieve substantial cost savings compared to the individual replenishment policy for non-instantaneous deteriorating items. Furthermore, sensitivity analysis of key parameters is carried out and the implications are discussed in detail.