Optimal Ordering and Recovery Policy for Reusable Items with Shortages
This study considers inventory of reusable items with shortages and develops a replenishing and production policy to satisfy customer need, and to promote the smart use of resources. Distinct from former researches, our study considers reusable items with shortages to derive the best replenishment and production strategy. A hybrid of numerical analysis and search method is used to derive the minimum total cost of the mathematical model. The result is compared with the case when no shortage is allowed.
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