A Deterministic Inventory/Production Model with General Inventory Cost Rate Function and Concave Production Costs
We present a thorough analysis of the economic order quantity model with shortages under a general inventory cost rate function and concave production costs. By using some standard results from convex analysis, we show that the model exhibits a composite concave-convex structure. Consequently, an effective solution procedure, particularly useful for an approximation scheme, is proposed. A computational study is appended to illustrate the performance of the proposed solution procedure.
|Keywords||Inventory, concave production cost, concave-convex programming, general inventory cost function|
Birbil, S.I., Frenk, J.B.G., & Bayindir, Z.P.. (2004). A Deterministic Inventory/Production Model with General Inventory Cost Rate Function and Concave Production Costs (No. ERS-2004-064-LIS). Retrieved from http://hdl.handle.net/1765/1536