A Study on the Effect of Inflation and Time Value of Money on Lot Sizing in Spite of Reworking in an Inventory Control Model
نویسندگان
چکیده
Original scientific paper Non production of defective parts during production operations and non-attention to inflation and time value of money are among the hypotheses of economic production quantity model. But the performed studies show that considering defective parts in production size determination models or including the subject of inflation and time value of money in them leads to the change of optimal quantity of production class. Therefore, in production systems with defective parts production, it is necessary to consider these two factors in order to determine production class size. This article studies the effect of time value of money on economic production quantity model in spite of repetition. Due to the complexity of cost function, it is not possible to find an optimal answer easily; therefore, this article uses an algorithm based on combination of two search methods, accelerating and Dico Thomas, in order to solve the problem. Finally, sensitivity analysis has been done on the basis of interest rate, inflation rate and joint rate. Numerical calculation shows that failure to consider inflation and time value of money causes relatively high error in cost.
منابع مشابه
بررسی اثر تورم و ارزش زمانی پول بر روی اندازهی دستهی تولید با وجود دوباره کاری در یک مدل کنترل موجودی
One of the assumptions in Economic Production Quantity is that there is no imperfect production. Also the effect of inflation and time value of money is not considered with this model. But the studies show that the consideration of imperfect products in lot sizing or inflation and time value of money is varying the optimal lot size, therefore consideration of these two factors in lot sizing is ...
متن کاملAn inventory model for non-instantaneous deteriorating items with imperfect quality, delay in payments and time value money
In this paper, Economic Order Quantity ( ) based model for non-instantaneous deteriorating items with imperfect quality, permissible delay in payments and inflation is proposed. We adopt a time-dependent demand function. Also, the effects of time value of money are studied using the Discounted Cash Flow approach. Moreover, we assume that orders may contain a random proportion of defective items...
متن کاملThe Inventory System Management under Uncertain Conditions and Time Value of Money
This study develops a inventory model to determine ordering policy for deteriorating items with shortages under markovian inflationary conditions. Markov processes include process whose future behavior cannot be accurately predicted from its past behavior (except the current or present behavior) and which involves random chance or probability. Behavior of business or economy, flow of traffic, p...
متن کاملA Multi-objective Mathematical Model for Sustainable Supplier Selection and Order Lot-Sizing under Inflation
Recently, scholars and practitioners have shown an increased interest in the field of sustainable supplier selection and order lot-sizing. While several studies have recently carried out on this field, far too little attention has been given to formulating a multi-objective model for the integrated problem of multi-period multi-product order lot-sizing and sustainable supplier selection under i...
متن کاملTwo-warehouse system for non-instantaneous deterioration products with promotional effort and inflation over a finite time horizon
In the current global market, organizations use many promotional tools to increase their sales. One such tool is sales teams’ initiatives or promotional policies, i.e., free gifts, discounts, packaging, etc. This phenomenon motivates the retailer/or buyer to order a large inventory lot so as to take full benefit of promotional policies. In view of this the present paper considers a two-warehous...
متن کامل