No Shortages
Infinite
Finite

Shortages Backordered
Infinite
Finite

Lost Sales
Infinite
Finite

Summary

Subunit
Inventory Theory
- Deterministic Summary

In this section we summarize formulas for the unrestricted optimums of the decision variables for the several deterministic models. We are assuming that all parameters are nonnegative, lot sizes are positive and fill rates are between 0 and 1 inclusive. For the backordered cases , , and indicate respectively that backorder cost is proportional to waiting time, there is a fixed cost in the event of a backorder and there is a fixed cost for each unit of backorder.

 

Models with No Shortages

Shortages
Infinite Replenishment Rate
Finite Replenishment Rate
None

Backordered
()
$/unit-time

Backordered
()
$/event
Backordered
()
$/unit
Lost Sale
()
$/unit

 


  
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tree roots

Operations Management / Industrial Engineering
Internet
by Paul A. Jensen
Copyright 2004 - All rights reserved

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