A periodic review inventory model with two delivery modes, fractional lead-times, and age-and-period-dependent backlogging costs
Document Type
Article
Publication Date
3-1-2016
Abstract
We examine a periodic review inventory model where the buyer has access to a mix of two delivery modes for the quantity it orders in a period; these include an emergency delivery mode that delivers instantaneously and a regular delivery mode that delivers within the length of the review period. The unmet demand is backordered and charged a backlogging cost that varies with the length of the backlogging time. The excess inventory is charged a holding cost. The unit costs for the delivery modes could be different. We show that the well-known base-stock policy structure remains optimal for this problem under mild conditions.
DOI
10.1016/j.ijpe.2015.12.002
Publication Title
International Journal of Production Economics
Volume Number
173
First Page
199
Last Page
206
ISSN
09255273
Recommended Citation
Chand, Suresh; Li, Jian; and Xu, Yanyi, "A periodic review inventory model with two delivery modes, fractional lead-times, and age-and-period-dependent backlogging costs" (2016). Management and Marketing Faculty Publications. 12.
https://neiudc.neiu.edu/mm-pub/12
