TY - GEN
T1 - Optimizing (r, Q) Decisions Considering Misplaced Items
T2 - 2018 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2018
AU - Zhang, Linda L.
AU - Tutuncu, G. Yazgi
AU - Franko, Ceki
N1 - Publisher Copyright:
© 2018 IEEE.
PY - 2018/7/2
Y1 - 2018/7/2
N2 - Most available (r, Q) inventory models assume that the actual inventory records are the same as these in the computer systems. With this unrealistic assumption, these models may, thus, distort the inventory decision making in practice. In this study, we develop new (r, Q) models considering the misplaced items to provide inventory managers with realistic decision-making support. In developing the new models, we characterize two cases: backorders and lost-sales. In both cases, we consider stochastic demand and introduce parameters to represent misplaced items. We also propose solution algorithms for model solving. Numerical examples are conducted to demonstrate the applicability and potential of the new (r, Q) models and solution algorithms in making realistic inventory decisions. We further obtain managerial implications.
AB - Most available (r, Q) inventory models assume that the actual inventory records are the same as these in the computer systems. With this unrealistic assumption, these models may, thus, distort the inventory decision making in practice. In this study, we develop new (r, Q) models considering the misplaced items to provide inventory managers with realistic decision-making support. In developing the new models, we characterize two cases: backorders and lost-sales. In both cases, we consider stochastic demand and introduce parameters to represent misplaced items. We also propose solution algorithms for model solving. Numerical examples are conducted to demonstrate the applicability and potential of the new (r, Q) models and solution algorithms in making realistic inventory decisions. We further obtain managerial implications.
KW - (rQ) policy
KW - backorders
KW - lost-sales
KW - misplaced items
UR - http://www.scopus.com/inward/record.url?scp=85061809022&partnerID=8YFLogxK
U2 - 10.1109/IEEM.2018.8607427
DO - 10.1109/IEEM.2018.8607427
M3 - Conference Proceeding
AN - SCOPUS:85061809022
T3 - IEEE International Conference on Industrial Engineering and Engineering Management
SP - 1598
EP - 1602
BT - 2018 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2018
PB - IEEE Computer Society
Y2 - 16 December 2018 through 19 December 2018
ER -