Journal article
A CONTINUOUS REVIEW MODEL WITH GENERAL SHELF AGE AND DELAY-DEPENDENT INVENTORY COSTS
Probability in the engineering and informational sciences, v 29(4), pp 507-525
01 Oct 2015
Featured in Collection : UN Sustainable Development Goals @ Drexel
Abstract
We analyze a continuous review inventory model with the marginal carrying cost of a unit of inventory given by an increasing function of its shelf age and the marginal delay cost of a backlogged demand unit by an increasing function of its delay duration. We show that, under a minor restriction, an (r, q)-policy is optimal when the demand process is a renewal process, and a state dependent (r, q)-policy is optimal when the demand is a Markov-modulated renewal process. We also derive various monotonicity properties for the optimal policy parameters r* and r* + q*.
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Details
- Title
- A CONTINUOUS REVIEW MODEL WITH GENERAL SHELF AGE AND DELAY-DEPENDENT INVENTORY COSTS
- Creators
- Awi Federgruen - Columbia Univ, Grad Sch Business, New York, NY 10025 USAMin Wang - Drexel Univ, LeBow Coll Business, Philadelphia, PA 19104 USA
- Publication Details
- Probability in the engineering and informational sciences, v 29(4), pp 507-525
- Publisher
- Cambridge Univ Press
- Number of pages
- 19
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Decision Sciences (and Management Information Systems)
- Web of Science ID
- WOS:000363427200002
- Scopus ID
- 2-s2.0-84945470489
- Other Identifier
- 991019167756104721
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- Collaboration types
- Domestic collaboration
- Web of Science research areas
- Engineering, Industrial
- Operations Research & Management Science
- Statistics & Probability