One-for-one period policy and its optimal solution over a finite horizon Online publication date: Mon, 29-Jul-2019
by Mohammadbagher Afshar-Bakeshloo; Fariborz Jolai; Mostafa Mazinani; Farhad Salehian
International Journal of Operational Research (IJOR), Vol. 35, No. 3, 2019
Abstract: Recently, a new ordering policy named one-for-one period policy has been introduced in a steady state condition for the zero ordering cost with an assumption of lost sales. In this policy, constant time interval between two consecutive unique orders is assumed. In contrast to this policy, this paper addresses a new approach in which inter-arrival times are determined in a finite horizon with limited amount of arrivals. Due to the transient condition of our approach, namely (S(n), 1), matrix multiplication must be employed, but it quickly becomes cumbersome for large n as there are (n − 1) decision variables for n arrivals. Thus, we have invoked the genetic search strategy to reduce the amount of search. Finally, we provide a numerical analysis to evaluate the performance of our approach. The results showed that by applying the suggested approach we can save cost compared with the one-for-one period policy for n < 200, especially when the ratio of lost sales to holding cost is large. Furthermore, arrivals scheduling creates a dome-shaped inter-arrival times.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Operational Research (IJOR):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com