Age Replacement Policy With Age-Dependent Minimal Repair^*

* This research was supported by the National Sciences and Engineering Research Council of Canada: Grant A-3736.

Abstract

The presence of quantity discounts, in general, increases the order quantities (lot size). Other factors such as limited space or limited cash, however, restrict the degree to which the lot sizes can be increased. In this paper we investigate a heuristic procedure to allocate the limited resources to the products so as best to exploit the discounting structure and the costs of storage and ordering. The heuristic procedure has been demonstrated to be computationally very effective and within 0,9% of the optimum solution in sample tests.

Résumé

L’existence de rabais sur le volume augmente, de manière générale, les quantities de la conimande (tailie du lot). Cependant d’autres facteurs tels que l’espace de stockage limité, ou des liquidités reduites, restreignent le degré d’augmentation des tailles de lots, Dans cet article on examine une heuristique qui a pour objectif d’allower les ressources limitées aux produits de façon à exploiter au mieux la structure de rabais et les coûts de stockage et commande, Sur la base des echantillons étudiés on a démontré que l’heuristique est de résolution efficace et permet d’obtenir des resultats se situant à 0,9% de la solution optimale.

Notes

* This research was supported by the National Sciences and Engineering Research Council of Canada: Grant A-3736.

Additional information

Notes on contributors

Menachem Berg

MENACHEM BERG received a PhD (1975) from the Technion (Haifa) in OR. Dr Berg's research interests are mainly in stochastic modelling of systems operation. He has published in OR and applied probability journals on reliability theory, replacement and maintenance policies, and logistics. Currently Dr Berg is a Senior Lecturer at the University of Haifa and Adjunct Associate Professor in the University of Illinois at Chicago. He has held visiting positions at the University of British Columbia (Vancouver), the University of Califomia (Berkeley), and the University of Sussex (Brighton).

Robert Cleroux

ROBERT CLÉROUX is professor, Département d’informatique et de recherche opérationnelle, Université de Montréal. He has previously taught at Columbia University; was a research fellow at the Center for Operations Research and Econometrics at Université de Louvain; and was visiting professor at the Ecole Polytechnique Fédérate de Lausanne. Professor Cléroux’s research interests include reliability theory, numerical methods in statistics, multivariate data analysis, and statistical methods in air pollution. His papers have appeared in Can. Bull. Math., JASA, Can. J. Oper. Res., Stat. Hefte, Can. J. Dent. Assoc, INFOR, J. Stat. Comp. Simul., Can. J. For. Res., Technometrics, Can. J. Stat., Comm. in Stat., Nav. Res. Logist. Quart., Manag. Sci., Rev. Epid. Sant. Publ., Amer. J. Epid., Oper. Res., Union Méd., Water Air and Soil Poll., and J. Env. Syst. He is a member of ORSA, CORS, ASA, ssc, isi, and the Biometric Society. He is also associate editor of the Can. J. Stat. and editor of Les Annales des Sciences Mathématiques du Québec.