A production–inventory model incorporating the effect of preservation technology investment when demand is fluctuating with time
In most of the inventory models in the literature, the rate of deterioration of goods is viewed as an exogenous variable, which is not subject to control. In the real market, firms can reduce the rate of deterioration of products by means of effective capital investment in preservation technology. I...
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| Published in: | Journal of computational and applied mathematics Vol. 239; pp. 25 - 36 |
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| Main Authors: | , |
| Format: | Journal Article |
| Language: | English |
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Elsevier B.V
01.02.2013
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| ISSN: | 0377-0427, 1879-1778 |
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| Abstract | In most of the inventory models in the literature, the rate of deterioration of goods is viewed as an exogenous variable, which is not subject to control. In the real market, firms can reduce the rate of deterioration of products by means of effective capital investment in preservation technology. In this research, we formulate a production–inventory model for deteriorating items with time-varying demand and finite replenishment rate by allowing preservation technology cost as a decision variable in conjunction with production policy. The objective is to find the optimal production and preservation technology investment strategies while minimizing the total cost over the planning horizon. A traditional particle swarm optimization is coded and used to solve the mixed-integer nonlinear programming problem. Some numerical examples are used to illustrate the features of the proposed model. |
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| AbstractList | In most of the inventory models in the literature, the rate of deterioration of goods is viewed as an exogenous variable, which is not subject to control. In the real market, firms can reduce the rate of deterioration of products by means of effective capital investment in preservation technology. In this research, we formulate a production-inventory model for deteriorating items with time-varying demand and finite replenishment rate by allowing preservation technology cost as a decision variable in conjunction with production policy. The objective is to find the optimal production and preservation technology investment strategies while minimizing the total cost over the planning horizon. A traditional particle swarm optimization is coded and used to solve the mixed-integer nonlinear programming problem. Some numerical examples are used to illustrate the features of the proposed model. |
| Author | Dye, Chung-Yuan Hsieh, Tsu-Pang |
| Author_xml | – sequence: 1 givenname: Tsu-Pang surname: Hsieh fullname: Hsieh, Tsu-Pang organization: Department of Business Administration, Aletheia University, Tamsui, Taipei 251, Taiwan, ROC – sequence: 2 givenname: Chung-Yuan surname: Dye fullname: Dye, Chung-Yuan email: chungyuandye@gmail.com organization: Graduate School of Business and Administration, Shu-Te University, Yen-Chao, Kaohsiung 824, Taiwan, ROC |
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| Keywords | Preservation technology investment Time-varying demand Deterioration Particle swarm optimization Inventory |
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| References_xml | – volume: 194 start-page: 700 year: 2009 end-page: 710 ident: br000050 article-title: A two-warehouse production model for deteriorating inventory items with time-dependent demands publication-title: European Journal of Operational Research – volume: 16 start-page: 129 year: 1974 end-page: 132 ident: br000085 article-title: The small sample behavior of some statistics which test the equality of several means publication-title: Technometrics – volume: 26 start-page: 237 year: 1999 end-page: 254 ident: br000030 article-title: A variable production scheduling policy for deteriorating items with time-varying demand publication-title: Computers & Operations Research – reference: J. Kennedy, R.C. 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| SubjectTerms | Demand Deterioration Financing Inventory Investment Marketing Mathematical models Optimization Particle swarm optimization Preservation Preservation technology investment Time-varying demand |
| Title | A production–inventory model incorporating the effect of preservation technology investment when demand is fluctuating with time |
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