An Optimal Inventory-distribution Model with Deteriorating Items and Inventory-Level-Dependent Demand
Min Jie
Fu Juan
Ou Jian
Liu Yao-xi
Abstract：The demand of items in the supermarket mode of sales terminals is largely dependent on its in-ventory level because of the “selection effect” and“advertising effect” of items'demonstrated inventory .It is assumed that retailer sells deteriorating items in supermarkets , and the demand of items linear depends on the current stock levels .When the inventory level in the supermarkets drops to a certain amount , the i-tems should be transported immediately from distribution center to supermarkets to supplement its invento -ry.An inventory-distribution model is developed based on the goal of maximum average profit , the exist-ence and uniqueness of the optimal solution to the present model are examined by optimization theory , and an algorithm is also shown to find the global optimal inventory and distribution policies of the considered problem.Finally, numerical examples are given and a sensitive analysis made to illustrate the effect of pa-rameters on the system's optimal strategy and profits .
Keywords：inventorydeteriorating itemsinventory-level-dependent demanddistribution
Publication Date：2014-01-01
Online Publishing Date：2025-08-15(First online date of this platform, not the publication date of the document)
Pages：8( 54-61 )