An optimal production-inventory model for deteriorating items with multiple-market demand

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

72 Scopus Citations
View graph of relations

Author(s)

  • Yong He
  • Shou-Yang Wang
  • K. K. Lai

Related Research Unit(s)

Detail(s)

Original languageEnglish
Pages (from-to)593-600
Journal / PublicationEuropean Journal of Operational Research
Volume203
Issue number3
Publication statusPublished - 16 Jun 2010

Abstract

The global markets of today offer more selling opportunities to the deteriorating items' manufacturers, but also pose new challenges in production and inventory planning. From a production management standpoint, opportunities to exploit the difference in the timing of the selling season between geographically dispersed markets for deteriorating items are important to improving a firm's profitability. In this paper, we examined the above issue with an insightful production-inventory model of a deteriorating items manufacturer selling goods to multiple-markets with different selling seasons. We also provided a solution procedure to find the optimal replenishment schedule for raw materials and the optimal production plan for finished products. A numerical example was then used to illustrate the model and the solution procedure. Finally, sensitivity analysis of the optimal solution with respect to major parameters was carried out. © 2009 Elsevier B.V. All rights reserved.

Research Area(s)

  • Deteriorating items, Inventory management, Multiple-market, Supply chain management