A deterministic lot-size inventory model with shortages and a linear trend in demand

Upendra Dave

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Supply Chain and Inventory Management Management and Optimization Techniques Optimization and Mathematical Programming

Abstract

A single-item order-level lot-size-type inventory model is developed for items with a deterministic time-dependent demand. Shortages are allowed during the fixed finite planning horizon whose initial and final inventory levels are zero. A general inventory model is developed first and then an exact solution for the particular case of the linearly increasing demand rate is derived. An operating schedule for calculating the optimal solution is suggested. A numerical example is also given.

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References

1958Dynamic Version of the Economic Lot Size Model 2004Dynamic Version of the Economic Lot Size Model 1977Inventory Replenishment Policy for a Linear Trend in Demand—An Analytical Solution 1966A Deterministic Multi-Period Production Scheduling Model with Backlogging 1979A Simple Inventory Replenishment Decision Rule for a Linear Trend in Demand 1984The E.O.Q. for Linear Increasing Demand: A Simple Optimal Solution 1976On a General Solution of the Deterministic Lot Size Problem with Time-Proportional Demand 1979Inventory Replenishment Policy for Increasing Demand

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2014Managing disruption in an imperfect production–inventory system 2006An EOQ model with a quadratic demand, time-proportional deterioration and shortages in all cycles 1999An inventory model of deteriorating items with lot-size dependent replenishment cost and a linear trend in demand 1989On a Heuristic Inventory-replenishment Rule for Items with a Linearly Increasing Demand Incorporating Shortages 2004Deterministic economic order quantity models with partial backlogging when demand and cost are fluctuating with time

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