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.
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.