Optimal Ordering Policy of Deteriorating Items with Mixed Cargo Transportation Over a Finite Planning Horizon

Hsi-Mei Hsu, Zi-Yin Chen

Department of Industrial Engineering & Management, National Chaio Tung University, Hsinchu, Chinese Taipei.

DOI: 10.4236/ajor.2012.21013                

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).

Keywords

Transportation Costs; Deteriorating Items; Inventory Management

Conflicts of Interest

The authors declare no conflicts of interest.

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