Title :
Optimal Inventory Policy For Products With Warranty Agreements
Author :
Yeo, Wee Meng ; Yuan, Xue-Ming
Author_Institution :
Singapore Inst. of Manuf. Technol., Singapore
Abstract :
This working paper discusses the optimal policy for a periodic review inventory system with two-component products under non-renewable warranty agreement. Customer demands for products are independent and identically distributed with a common general distribution. Components are subjected to failure with exponential distributions once products are sold. The objective of this work is to decide the optimal inventory level of the product and components so that the total operational cost is minimized.
Keywords :
contracts; exponential distribution; inventory management; exponential distribution; nonrenewable warranty agreement; optimal inventory policy; Cost function; Drives; Dynamic programming; Exponential distribution; Law; Paper technology; Pulp manufacturing; Random variables; Stochastic processes; Warranties; Dynamic Programming; Inventory; Stochastic Demand; Warranty;
Conference_Titel :
Industrial Electronics, 2007. ISIE 2007. IEEE International Symposium on
Conference_Location :
Vigo
Print_ISBN :
978-1-4244-0754-5
Electronic_ISBN :
978-1-4244-0755-2
DOI :
10.1109/ISIE.2007.4374885
