An Inventory Model with Lost Sale is Time Dependent

Authors

  • Ying-Chieh Chen Department of Accounting, Ming Chuan University, Taipei, Taiwan
  • Po-Yu Chen Department of Advertising, Ming Chuan University, Taipei, Taiwan

DOI:

https://doi.org/10.18488/journal.29/2014.1.4/29.4.39.48

Abstract

In this paper, we shall construct an inventory model with partially backlogged shortage and Poisson demand. In the shortage period, we assume that lost sale is dependent on the length of waiting time. Under these assumptions, we find the optimal planning and shortage periods such that the expected profit per unit time is maximized. Also, we can estimate the optimal expected backordered quantity and the expected order quantity.

Keywords:

Inventory, Partially backordered, Poisson demand, EOQ, Lost sales, Withdrawal rate

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Published

2014-04-15

How to Cite

Chen, Y.-C. ., & Chen, P.-Y. . (2014). An Inventory Model with Lost Sale is Time Dependent. The Economics and Finance Letters, 1(4), 39–48. https://doi.org/10.18488/journal.29/2014.1.4/29.4.39.48

Issue

Vol. 1 No. 4 (2014)

Section

Articles