Generally, a high-tech product's demand rate during the growth stages increases significantly with linear or exponential growth, and then, in the maturity stage, it remains almost the same. This is a so-called ramp-type demand rate. Additionally, a specific product may deteriorate over time. The more deterioration there is, the higher the order quantity. Based on this consideration, the deterioration rate could not be ignored. Therefore, this paper established a two-warehouse partial backlogging inventory model incorporating a ramp-type demand for three-parameter Weibull distribution deteriorating items. The main task is to derive an optimal replenishment strategy that minimizes the net present value of the total relevant cost per unit of time. The results of the proposed inventory system are verified through numerical examples and sensitivity analysis. The numerical result offers a reference for inventory managers to reasonably order quantities when facing a ramp-type demand rate with Weibull distributed deterioration.
Relation:
International Journal of Information and Management Sciences 35, p.299-332
