Several authors have developed models for the EOQ when only a percentage of stockouts will be backordered. Most of these models are complicated, with equations unlike those for the EOQ with full backordering. In this paper we extend work by Pentico and Drake [The deterministic EOQ with partial backordering: a new approach. European Journal of Operational Research 2008; in press] that developed ...

This paper describes two heuristics for the basic economic order quantity and economic production quantity with partial backordering that use the time between orders and the percentage of demand filled from stock as the decision variables. Tests of the heuristics on a set of problems generated by using different values for six situational characteristics indicate that both heuristics should per...

Abstract: This study is concerned with replenishment decision making with repairable nonconforming products, backordering and random equipment failure during production uptime. In real world manufacturing systems, due to different factors generation of nonconforming items and unexpected machine breakdown are inevitable. Also, in certain business environments various situations between vendor an...

The classic Economic Order Quantity model assumes that the unit purchasing cost is not based on the order quantity. In practice, a supplier may offer purchasers an all-units discount. We develop a model and solution procedure for the EOQ with all-unit discounts and partial backordering at a constant rate. We show, and illustrate with a numerical example, how that model can be used to find the s...

This paper introduces and examines a generalized EOQ formula, based on the model with linear and fixed backordering costs. The new square-root formula is a combination of two well-known classical models, the basic EOQ model without stockouts and the EOQ model with backorders and linear backordering costs. Helping to combine the two is a new parameter, a fractional coefficient capturing the attr...

The classic Economic Order Quantity model assumes that an order is paid for at the time of its receipt. In practice, suppliers may require purchasers to pay a fraction of the order’s cost in advance and sometimes allow them to divide the prepayment into multiple equalsized parts to be paid during a fixed lead time. In this paper, an EOQ model with multiple prepayments under three different cond...

While there has been considerable work over the years on multistage lot-sizing models, particularly in an MRP environment, there has been relatively little work on systems recognizing the WIP effects when there is gradual conversion of the components into the final product, as in production planning using the EPQ model for planning the final product. Here we consider lot-sizing planning for a t...

In this paper, we study a single-product inventory system which involves a supplier, a retailer, and differentiated customers. The supplier provides products to the retailer which in turn sells products to its customers. The supplier is unreliable and is subject to random disruptions. The retailer adopts a periodic-review inventory policy, under which the retailer reviews its inventory position...

The main objective of this paper is to develop a two-warehouse inventory model with partial backordering and Weibull distribution deterioration. We consider inflation and apply the discounted cash flow in problem analysis. The discounted cash flow DCF and optimization framework are presented to derive the optimal replenishment policy that minimizes the total present value cost per unit time. Wh...