Partial Backordering Inventory Model under Purchase Dependence

Changkyu Park
2015 Industrial Engineering & Management Systems  
Retail shops often experience purchase dependence in which some items are purchased together by customers due to their unknown interior associations. This paper develops an inventory model considering partial backordering under purchase dependence and compares the performance of the inventory model that ignores purchase dependence. Computational analyses show that purchase dependence should be incorporated as an important factor of inventory replenishment policy because the impact of purchase
more » ... mpact of purchase dependence can be more significant as the lost portion of the unmet demand orders increases and the item set is more correlated in terms of order demand.
doi:10.7232/iems.2015.14.3.275 fatcat:rjdljibkcjebzeqb2aa5tibqee