Inventory Models for Increasing Demand Followed by Level Demand

Roger M. Hill

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Supply Chain and Inventory Management Management and Optimization Techniques Scheduling and Optimization Algorithms

Abstract

This paper considers a product subject to a period of increasing demand, according to a general power law, followed by a period of level demand. By assuming that the Economic Batch Quantity (EBQ) is used as soon as level demand is reached, we derive the optimal production/purchasing policy for use at any stage during the period of growth. The optimal approach is compared with that of the Silver-Meal heuristic.

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References

1977Inventory Replenishment Policy for a Linear Trend in Demand—An Analytical Solution 1979A Simple Inventory Replenishment Decision Rule for a Linear Trend in Demand 1991Effects of inflation and time-value of money on an inventory model with linear time-dependent demand rate and shortages 1987A Note on the Heuristic for Replenishment of Trended Inventories Considering Shortages 1976On a General Solution of the Deterministic Lot Size Problem with Time-Proportional Demand 1992An Economic Order Quantity Model for Items with Two Levels of Storage for a Linear Trend in Demand 1979Inventory Replenishment Policy for Increasing Demand

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