Abstract
In this paper, we propose a deteriorating items inventory model with constant demand and deterioration rates, and mixed cargo transportation modes. The transportation modes are full container load (FCL) and less than container load (LCL). Deteriorating items, such as specialty gases which are applied in semiconductor fabrication, deteriorate owing to environmental variation. Exact algorithms are proposed to determine the optimal inventory policies over a finite and an infinite planning horizon. Numerical examples are given to illustrate the proposed solution procedures. In addition, when the deterioration rate is large, the results of the proposed model perform better compared to the inventory model proposed by Rieksts and Ventura (2008).
Highlights
In this paper, we study a deteriorating items inventory model with mixed cargo transportation over a given finite planning horizon
We propose a deteriorating items inventory model with constant demand and deterioration rates, and mixed cargo transportation modes
We study a deteriorating items inventory model with mixed cargo transportation over a given finite planning horizon
Summary
We study a deteriorating items inventory model with mixed cargo transportation (full container load, FCL, and less than container load, LCL) over a given finite planning horizon. The assumptions are as follows: 1) supplier capacity is unlimited; 2) the delivery time is constant; 3) the salvage of inventory is zero; 4) the retailer needs to satisfy customers’ demand and shortage is not allowed. Company A has signed supply contracts with various semiconductor manufacturing companies to supply various types of bulk gas, bulk specialty gas, and electronic chemicals Under these contracts, Company A is obliged to supply gas to meet customers’ demand ( dTH ) within a finite horizon TH and shortage is not allowed. We develop a deteriorating items inventory model with mixed cargo transportation to determine the order interval of goods over a given finite planning horizon.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
