Optimal Policies for a Finite-Horizon Production Inventory Model

This paper is concerned with the problem of finding the optimal production schedule for an inventory model with time-varying demand and deteriorating items over a finite planning horizon. This problem is formulated as a mixed-integer nonlinear program with one integer variable. The optimal schedule...

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Bibliographic Details
Published in:Advances in Operations Research Vol. 2012; no. 2012; pp. 360 - 375
Main Authors: Benkherouf, Lakdere, Boushehri, Dalal
Format: Journal Article
Language:English
Published: Cairo, Egypt Hindawi Limiteds 01.01.2012
Hindawi Puplishing Corporation
Hindawi Publishing Corporation
John Wiley & Sons, Inc
Subjects:
Algorithms
Costs
Deterioration
Economic models
Economic theory
Hypotheses
Integer programming
Integers
Inventories
Mathematical models
Nonlinearity
Operations research
Optimization
Schedules
Stockpiling
Studies
ISSN:1687-9147, 1687-9155
Online Access:Get full text
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Summary:This paper is concerned with the problem of finding the optimal production schedule for an inventory model with time-varying demand and deteriorating items over a finite planning horizon. This problem is formulated as a mixed-integer nonlinear program with one integer variable. The optimal schedule is shown to exist uniquely under some technical conditions. It is also shown that the objective function of the nonlinear obtained from fixing the integrality constraint is convex as a function of the integer variable. This in turn leads to a simple procedure for finding the optimal production plan.
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ISSN:1687-9147
1687-9155
DOI:10.1155/2012/768929