Value of supplier flexibility and initial shelf life information in an EOQ environment,


Bayındır Z. P. , Şar C., Bakal İ. S.

29th European Conference on Operational Research, Valencia, İspanya, 7 - 11 Temmuz 2018, ss.412

  • Basıldığı Şehir: Valencia
  • Basıldığı Ülke: İspanya
  • Sayfa Sayıları: ss.412

Özet

We consider an infinite horizon, continuous review inventory model

with deterministic stationary demand where the shelf life of the items

is uncertain. The initial life times of the incoming items from the supplier

is a discrete random variable. When the age of the items reaches

the initial shelf-life, a quality control test for which the outcome is

random is applied. According to the result of this test, it is possible

to use the items to satisfy demand for an additional time period. In

this environment, our objective is to investigate the supplier flexibility

which is modeled by including a return policy and the initial shelf life

information received before ordering decisions. Several scenarios are

constructed and compared using Renewal Theory.