A Deterministic Inventory/Production Model with General Inventory Cost Rate Function and Concave Production Costs

Z.P. Bayindir, S. Ilker Birbil, J. B. G. Frenk
2004 Social Science Research Network  
We present a thorough analysis of the economic order quantity model with shortages under a general inventory cost rate function and concave production costs. By using some standard results from convex analysis, we show that the model exhibits a composite concave-convex structure. Consequently, an effective solution procedure, particularly useful for an approximation scheme, is proposed. A computational study is appended to illustrate the performance of the proposed solution procedure.
doi:10.2139/ssrn.611821 fatcat:l6apt2kejndbvbqxlxvfk642xi