An economic order quantity model with nonlinear holding cost, partial backlogging and ramp-type demand. Issue 7 (3rd July 2018)

• Record Type: Journal Article
• Authors: San-José, Luis A.; Sicilia, Joaquín; González-de-la-Rosa, Manuel; Febles-Acosta, Jaime
• Is Part Of: Engineering optimization. Volume 50:Issue 7(2018)
• Page Start: 1164
• Page End: 1177
• Publication Date: 2018-07-03
• Subjects: EOQ model -- nonlinear holding cost -- partial backlogging -- ramp-type demand -- profit maximization; Engineering design -- Periodicals; Mathematical optimization -- Periodicals; 620.0042
• DOI: 10.1080/0305215X.2017.1414205
• Languages: English
• ISSNs: 0305-215X

Abstract

ABSTRACT: In this article, a deterministic inventory model with a ramp-type demand depending on price and time is developed. The cumulative holding cost is assumed to be a nonlinear function of time. Shortages are allowed and are partially backlogged. Thus, the fraction of backlogged demand depends on the waiting time and on the stock-out period. The aim is to maximize the total profit per unit time. To do this, a procedure that determines the economic lot size, the optimal inventory cycle and the maximum profit is presented. The inventory system studied here extends diverse inventory models proposed in the literature. Finally, some numerical examples are provided to illustrate the theoretical results previously propounded.