An optimal inventory policy under certainty distributed demand for cutting tools with stochastically distributed lifespan
Traditional inventory policy was deeply investigated for various kinds of demand in different industrial sectors. More extensive explorations on inventory policy, including the combination with manufacturing process, detailed attributes of the purchased products, etc. was conducted by many researche...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Taylor & Francis Group
2015-12-01
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| Series: | Cogent Engineering |
| Subjects: | |
| Online Access: | http://dx.doi.org/10.1080/23311916.2014.990671 |
| _version_ | 1827884675533635584 |
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| author | Cun Rong Li Jiadong Cheng |
| author_facet | Cun Rong Li Jiadong Cheng |
| author_sort | Cun Rong Li |
| collection | DOAJ |
| description | Traditional inventory policy was deeply investigated for various kinds of demand in different industrial sectors. More extensive explorations on inventory policy, including the combination with manufacturing process, detailed attributes of the purchased products, etc. was conducted by many researchers. During manufacturing process, lifespan of cutting tools have significant impact on both the quantity of inventory and production cost. In this paper, the impact of maximum allowable stopping time for cutting tools on production-inventory policy under general production demands was investigated. An optimal inventory policy with general demand (OIPGD) was developed with which the allowable stopping time for tools, order-up-to-level inventory, and order cycle can be optimally determined by an exhaustive searching algorithm. Examples with different distributions on tool lifespan and production demand is presented to show the implementation of the OIPGD model. The results and the sensitivity analysis about the parameters show that optimized combination of selection for tool allowable stopping time, order-up-to-level, and order cycle time can dramatically minimize the total cost of the whole inventory activity. |
| first_indexed | 2024-03-12T19:32:29Z |
| format | Article |
| id | doaj.art-59d79e6a46844ff9bc1a57d07667e52b |
| institution | Directory Open Access Journal |
| issn | 2331-1916 |
| language | English |
| last_indexed | 2024-03-12T19:32:29Z |
| publishDate | 2015-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Engineering |
| spelling | doaj.art-59d79e6a46844ff9bc1a57d07667e52b2023-08-02T04:24:14ZengTaylor & Francis GroupCogent Engineering2331-19162015-12-012110.1080/23311916.2014.990671990671An optimal inventory policy under certainty distributed demand for cutting tools with stochastically distributed lifespanCun Rong Li0Jiadong Cheng1Wuhan University of TechnologyWuhan University of TechnologyTraditional inventory policy was deeply investigated for various kinds of demand in different industrial sectors. More extensive explorations on inventory policy, including the combination with manufacturing process, detailed attributes of the purchased products, etc. was conducted by many researchers. During manufacturing process, lifespan of cutting tools have significant impact on both the quantity of inventory and production cost. In this paper, the impact of maximum allowable stopping time for cutting tools on production-inventory policy under general production demands was investigated. An optimal inventory policy with general demand (OIPGD) was developed with which the allowable stopping time for tools, order-up-to-level inventory, and order cycle can be optimally determined by an exhaustive searching algorithm. Examples with different distributions on tool lifespan and production demand is presented to show the implementation of the OIPGD model. The results and the sensitivity analysis about the parameters show that optimized combination of selection for tool allowable stopping time, order-up-to-level, and order cycle time can dramatically minimize the total cost of the whole inventory activity.http://dx.doi.org/10.1080/23311916.2014.990671inventory policygeneral demandlifespan assessmentcutting tools |
| spellingShingle | Cun Rong Li Jiadong Cheng An optimal inventory policy under certainty distributed demand for cutting tools with stochastically distributed lifespan Cogent Engineering inventory policy general demand lifespan assessment cutting tools |
| title | An optimal inventory policy under certainty distributed demand for cutting tools with stochastically distributed lifespan |
| title_full | An optimal inventory policy under certainty distributed demand for cutting tools with stochastically distributed lifespan |
| title_fullStr | An optimal inventory policy under certainty distributed demand for cutting tools with stochastically distributed lifespan |
| title_full_unstemmed | An optimal inventory policy under certainty distributed demand for cutting tools with stochastically distributed lifespan |
| title_short | An optimal inventory policy under certainty distributed demand for cutting tools with stochastically distributed lifespan |
| title_sort | optimal inventory policy under certainty distributed demand for cutting tools with stochastically distributed lifespan |
| topic | inventory policy general demand lifespan assessment cutting tools |
| url | http://dx.doi.org/10.1080/23311916.2014.990671 |
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