1 AIT Asian Institute of Technology

Inventory policy for non-linear increasing demand pattern and shortage allowance

AuthorAstanti, Ririn Diar
Call NumberAIT Diss. no.ISE-08-03
Subject(s)Inventory control

NoteA dissertation submitted in partial fulfillment of the requirements for the degree of Doctor of Engineering in Industrial Engineering and Management, School of Engineering and Technology
PublisherAsian Institute of Technology
Series StatementDissertation ; no. ISE-08-03
AbstractVarious traditional inventory policies have been developed in the past for stable demand pattern under an infinite planning horizon. However, in the growth stage of the product life cycle, demand rate of any product is not stable but possesses an increasing pattern. Thus, the use of past-developed inventory policies might provide inappropriate results in this situation. A proper inventory policy is, hence, still needed for the situation of increasing demand pattern, especially when the demand rate has a nonlinear functional form. The research in this dissertation aims at development of heuristic techniques for inventory systems with nonlinear increasing demand pattern and shortage allowance. To avoid penalty cost at the end of the planning horizon, the proposed heuristic techniques are developed in such a way that the total demand during a pre-defined planning horizon can be exactly met. There are five heuristic techniques that have been developed in this dissertation. These heuristic techniques can be categorized into three groups. The first group aims at the Inventory Followed by Shortage (IFS) policy. In this group a heuristic technique based on a combined consecutive improvement and reduction cost method is developed. The second group consists of the techniques developed for Shortage Followed by Inventory (SFI) policy. There are three heuristic techniques in this group in which the first is the technique based on a combined consecutive and reduction cost method, the second is the technique based on reduction cost method, and the last is the technique based on a forward-backward rolling procedure. In the third group, a general heuristic technique was developed for both ISF and SFI policies. This last proposed heuristic technique is based on a repetitive forward rolling procedure. It has been illustrated through various numerical experiments in this dissertation that all proposed heuristic techniques perform quite well. As compared to other techniques developed in the past, the proposed heuristic techniques in this dissertation can always give better or comparable results with much shorter computational times.
Year2008
Corresponding Series Added EntryAsian Institute of Technology. Dissertation ; no. ISE-08-03
TypeDissertation
SchoolSchool of Engineering and Technology (SET)
DepartmentDepartment of Industrial Systems Engineering (DISE)
Academic Program/FoSIndustrial Systems Engineering (ISE)
Chairperson(s)Huynh Trung Luong;
Examination Committee(s)Voratas Kachitvichyanukul;Poompat Saengudomlert;Bohez, Erik L. J.;
Scholarship Donor(s)Universitas Atma Jaya Yogyakarta, Indonesia;
DegreeThesis (Ph.D.) - Asian Institute of Technology, 2008


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