Deteriorating Items Inventory Model in Supply Chain with the Learning Effect
This paper considers the deteriorating items inventory model in supply chain with the learning effect of setup costs. In a finite planning horizon, an optimal replenishment policy is proposed for two cases of the problem with a deterministic constant demand, respectively. For the case with backlogging, the paper proves there exist a unique optimal solution and designs a optimal algorithm. For the case without backlogging, the number of replenishments are regarded as the decision variables and a solution procedure to find u-nique optimal solution is proposed. Finally, numerical examples are given to illustrate the theoretical results.