An Inventory Model with Dependent Product Demands and Returns
2001-03-27
Research Paper
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In this paper an inventory model for a single reusable product is investigated, in which the random returns depend explicitly on the demand stream. Further, the model distinguishes itself from most other research in this field by considering leadtimes and a finite planning horizon. We show that neglecting the dependency between demands and returns of products may lead to bad performance with respect to total average relevant costs. Additionally, our results enable us to determine the minimal recovery probability or the minimal length of the planning horizon for which reuse is profitable.
Keywords
Classifications using
Journal of Economic Literature (JEL) Classification System
- M : Business Administration and Business Economics; Marketing; Accounting
- R4 : Transportation Systems
- M11 : Production Management
Automatically Extracted Terms
- return
- inventory
- period t
- period
- inventory position
- probability
- planning horizon
- policy
- demand
- position
- product
- planning
- recovery probability
- horizon
- distribution
- model
- figure
- number
- order
- system
