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An optimal replenishment policy for an EOQ model with partial backlogging

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Abstract

We study an inventory system where demand on the stockout period is partially backlogged. The backlogged demand ratio is a mixture of two exponential functions. The shortage cost has two significant costs: the unit backorder cost (which includes a fixed cost and a cost proportional to the length of time for which the backorder exists) and the cost of lost sales. A general procedure to determine the optimal policy and the minimum inventory cost for all the parameter values is developed. This model generalizes several inventory systems analyzed by different authors. Numerical examples are used to illustrate the theoretical results.

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Authors and Affiliations

  1. Departamento de Estadística, Investigación Operativa y Computación, Facultad de Matemáticas, Universidad de La Laguna, 38271, La Laguna, Spain

    Joaquín Sicilia

  2. Departamento de Matemática Aplicada, Escuela Técnica Superior de Ingeniería Informática, Valladolid, Spain

    Luis A. San-José

  3. Departamento de Estadística e Investigación Operativa, Facultad de Ciencias, Universidad de Valladolid, Valladolid, Spain

    Juan García-Laguna

Authors
  1. Joaquín Sicilia
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  2. Luis A. San-José
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  3. Juan García-Laguna
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Correspondence to Joaquín Sicilia.

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Sicilia, J., San-José, L.A. & García-Laguna, J. An optimal replenishment policy for an EOQ model with partial backlogging. Ann Oper Res 169, 93–115 (2009). https://doi.org/10.1007/s10479-008-0393-3

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  • DOI: https://doi.org/10.1007/s10479-008-0393-3

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