Inventory Model with Partial Backordering When Backordered Customers Delay Purchase after Stockout-Restoration
Joint Authors
Zhou, Wenhui
Zhang, Ren-Qian
Wu, Yan-Liang
Fang, Wei-Guo
Source
Mathematical Problems in Engineering
Issue
Vol. 2016, Issue 2016 (31 Dec. 2016), pp.1-16, 16 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2016-02-10
Country of Publication
Egypt
No. of Pages
16
Main Subjects
Abstract EN
Many inventory models with partial backordering assume that the backordered demand must be filled instantly after stockout restoration.
In practice, however, the backordered customers may successively revisit the store because of the purchase delay behavior, producing a limited backorder demand rate and resulting in an extra inventory holding cost.
Hence, in this paper we formulate the inventory model with partial backordering considering the purchase delay of the backordered customers and assuming that the backorder demand rate is proportional to the remaining backordered demand.
Particularly, we model the problem by introducing a new inventory cost component of holding the backordered items, which has not been considered in the existing models.
We propose an algorithm with a two-layer structure based on Lipschitz Optimization (LO) to minimize the total inventory cost.
Numerical experiments show that the proposed algorithm outperforms two benchmarks in both optimality and efficiency.
We also observe that the earlier the backordered customer revisits the store, the smaller the inventory cost and the fill rate are, but the longer the order cycle is.
In addition, if the backordered customers revisit the store without too much delay, the basic EOQ with partial backordering approximates our model very well.
American Psychological Association (APA)
Zhang, Ren-Qian& Wu, Yan-Liang& Fang, Wei-Guo& Zhou, Wenhui. 2016. Inventory Model with Partial Backordering When Backordered Customers Delay Purchase after Stockout-Restoration. Mathematical Problems in Engineering،Vol. 2016, no. 2016, pp.1-16.
https://search.emarefa.net/detail/BIM-1112454
Modern Language Association (MLA)
Zhang, Ren-Qian…[et al.]. Inventory Model with Partial Backordering When Backordered Customers Delay Purchase after Stockout-Restoration. Mathematical Problems in Engineering No. 2016 (2016), pp.1-16.
https://search.emarefa.net/detail/BIM-1112454
American Medical Association (AMA)
Zhang, Ren-Qian& Wu, Yan-Liang& Fang, Wei-Guo& Zhou, Wenhui. Inventory Model with Partial Backordering When Backordered Customers Delay Purchase after Stockout-Restoration. Mathematical Problems in Engineering. 2016. Vol. 2016, no. 2016, pp.1-16.
https://search.emarefa.net/detail/BIM-1112454
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1112454