A Lot-Sizing Model for Non-Instantaneous Deteriorating Products Under Advance Payment and Non-Linear Partial Backlogging

Document Type : Research Paper

Authors

1 School of Industrial and Systems Engineering, College of Engineering, University of Tehran, Tehran, Iran

2 Department of Industrial Engineering, KHATAM University, Tehran, Iran

Abstract

In real life conditions, the buyers sometimes pay all or a percentage of the product price before receiving it, and the wholesaler sometimes allows them to prepay it at equal intervals. The present study develops a new mathematical model for products with non-instantaneous deteriorating rates by considering consecutive advance payments. In the proposed inventory model, the shortage is consisting of lost sales along with backorders simultaneously. In addition, the model considers the backlogging as totally dependent on the waiting time for the further cycle. In addition, the appropriate conditions to achieve the optimal solutions have been developed, and numerical instances have been provided to verify and evaluate the results and solution method. The useful methods to effectively reduce the annual total cost are provided according to the results of the sensitivity analysis.

Keywords

Main Subjects

References

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Interdisciplinary Journal of Management Studies (Formerly known as Iranian Journal of Management Studies)
Volume 15, Issue 1
January 2022
Pages 85-110

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