A MULTI-ITEM INVENTORY MODEL WITH A JOINT BACKORDER CRITERION,

Abstract

The paper is an investigation of the mathematical programming problem of maximizing a joint backorder (NORS) criterion subject to a budget constraint. The single-echelon model used in this study employs a criterion different from METRIC's sum of backorders. Moreover, it modifies the problem by assuming that all variables are continuous. It is proven that the NORS criterion is convex so that a global optimum can be found by a large number of nonlinear programming algorithms. It is also shown that one tends to buy more of the high-cost and high-variance items using NORS criterion. Thus, the answers obtained by the NORS criterion should line up fairly closely with Air Force intuition on stockage policy. (Author)

Document Details

Document Type
Technical Report
Publication Date
Apr 01, 1969
Accession Number
AD0686728

Entities

People

  • Bruce L. Miller

Organizations

  • RAND Corporation

Tags

DTIC Thesaurus Topics

  • Air Force
  • Algorithms
  • Applied Mathematics
  • Computer Programming
  • Evolutionary Algorithms
  • Heuristic Methods
  • Interdisciplinary Science
  • Inventory
  • Mathematical Programming
  • Mathematics
  • Nonlinear Programming
  • Operations Research

Fields of Study

  • Mathematics

Readers

  • Finite Element Method (FEM) for solving Partial Differential Equations (PDEs)
  • Logistics and Supply Chain Management.
  • Regression Analysis.