Generally, continuous inventory control models with allowed
backorders will have larger ordering quantity Q then basic EOQ model.
Wu, "Mixture inventory model with
backorders and lost sales for variable lead time," Journal of the Operational Research Society, vol.
Wang, "Manufacturer-buyer coordination for newsvendor-type-products with two ordering opportunities and partial
backorders," European Journal of Operational Research, vol.
Denote TB as the time period of
backorders. The existence of TB is related to Tr.
Backorders occur in the period of [t.sub.2], and the demand rate in period [t.sub.2] is the decreasing function of out-of-stock time.
They consistently maintain their inventory and keep their products up to date; however, at times a popular item may go faster than expected and they are left with the dreaded
backorder. In order to continue meeting their goal of 100% customer satisfaction, Semper Divina has decided to start rewarding its customers for their patience.
So if there's a
backorder on an item, they can't handle the situation.
The state is defined by the boundary conditions of inventory,
backorders, and workforce.
Fill rate is the fraction of demand that is met without
backorders or lost sales (Silver et al.
Our work in this paper considers a multi-item, multi-period CLSP with the considerations of
backorders and setup-times in its formulation.
In that model, they consider
backorders and constant defect rate in constant linier demand.