Using the algebraic approach to determine the replenishment optimal policy with defective products, backlog and delay of payments in the supply chain management

Jun Li; Hairong Feng; Kun-Jen Chung

doi:10.3934/jimo.2012.8.263

Article Contents

2012, Volume 8, Issue 1: 263-269. Doi: 10.3934/jimo.2012.8.263

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Using the algebraic approach to determine the replenishment optimal policy with defective products, backlog and delay of payments in the supply chain management

1.
School of Economics and Management, Southwest Jiaotong University, Chengdu, Sichuan 610031
2.
College of Business, Chung Yuan Christian University, Chung Li 32023

Received: October 2009

Revised: October 2011

Published: January 2012

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Abstract

Li et al. [Journal of Industrial and Management Optimization 5 (2009) 867-880] develop a model to determine an optimal replenishment policy with defective items and shortage backlogging under conditions of permissible delay in payments. They used the optimization technique based on differential calculus to determine an optimal replenishment policy. The main purpose of this paper is to solve the inventory problem in Li et al. (2009) by the algebraic method to simplify the solution procedures.

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Mathematics Subject Classification: 90B05.

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