We present a thorough analysis of the economic production quantity model with shortages under a general inventory cost rate function and piecewise linear concave production costs. 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.

Additional Metadata
Keywords general inventory cost rate function, inventory, piecewise linear concave production cost
JEL C6, Mathematical Methods and Programming (jel), M, Business Administration and Business Economics; Marketing; Accounting (jel), M11, Production Management (jel), R4, Transportation Systems (jel)
Persistent URL dx.doi.org/10.1016/j.ejor.2006.03.026, hdl.handle.net/1765/19256
Citation
Bayindir, Z.P, Birbil, S.I, & Frenk, J.B.G. (2007). A deterministic inventory/production model with general inventory cost rate function and piecewise linear concave production costs. European Journal of Operational Research, 179(1), 114–123. doi:10.1016/j.ejor.2006.03.026