Inventory Replenishment Policy For Linear Symmetric Demand

This research focuses on minimizing the summation of holding costs and ordering costs for a linear symmetric demand over a given time horizon. Since it is difficult to determine each reorder moment when the demand rate firstly increases and later falls, we choose to use a fixed time interval with a...

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Main Author: Ma, hao-wei
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2016
Subjects:
Online Access:https://eprints.nottingham.ac.uk/36318/
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author Ma, hao-wei
author_facet Ma, hao-wei
author_sort Ma, hao-wei
building Nottingham Research Data Repository
collection Online Access
description This research focuses on minimizing the summation of holding costs and ordering costs for a linear symmetric demand over a given time horizon. Since it is difficult to determine each reorder moment when the demand rate firstly increases and later falls, we choose to use a fixed time interval with a different replenishment quantity in each time. This method overcomes the difficulty of using Silver-Meal heuristic or any other traditional methods of calculating linear symmetric demand. Two numerical examples are provided to illustrate how simple the proposed method is. The total cost is 3% higher than Silver’s result in the case of initial demand equaling zero, but 1.3% lower than Silver’s result in the case of when initial demand is not zero. In addition, this solution procedure is much easier than Silver’s method and it is better to keep a constant order interval with suppliers since it may need more communications and extra cost when the interval is different from one to another.
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spelling nottingham-363182017-10-19T16:55:35Z https://eprints.nottingham.ac.uk/36318/ Inventory Replenishment Policy For Linear Symmetric Demand Ma, hao-wei This research focuses on minimizing the summation of holding costs and ordering costs for a linear symmetric demand over a given time horizon. Since it is difficult to determine each reorder moment when the demand rate firstly increases and later falls, we choose to use a fixed time interval with a different replenishment quantity in each time. This method overcomes the difficulty of using Silver-Meal heuristic or any other traditional methods of calculating linear symmetric demand. Two numerical examples are provided to illustrate how simple the proposed method is. The total cost is 3% higher than Silver’s result in the case of initial demand equaling zero, but 1.3% lower than Silver’s result in the case of when initial demand is not zero. In addition, this solution procedure is much easier than Silver’s method and it is better to keep a constant order interval with suppliers since it may need more communications and extra cost when the interval is different from one to another. 2016-09-06 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/36318/1/dissertation%20final.pdf Ma, hao-wei (2016) Inventory Replenishment Policy For Linear Symmetric Demand. [Dissertation (University of Nottingham only)] linear demand
spellingShingle linear demand
Ma, hao-wei
Inventory Replenishment Policy For Linear Symmetric Demand
title Inventory Replenishment Policy For Linear Symmetric Demand
title_full Inventory Replenishment Policy For Linear Symmetric Demand
title_fullStr Inventory Replenishment Policy For Linear Symmetric Demand
title_full_unstemmed Inventory Replenishment Policy For Linear Symmetric Demand
title_short Inventory Replenishment Policy For Linear Symmetric Demand
title_sort inventory replenishment policy for linear symmetric demand
topic linear demand
url https://eprints.nottingham.ac.uk/36318/