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Exact and approximate solution for optimal inventory control of two-stock with reworking and forecasting of demand

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Abstract

The aim of this paper is to describe a new optimal control model for optimal inventory control along with reworking items and forecasting the demand. The proposed model contains two stocks, one for serviceable products and one for returned products. The dynamic of the proposed system includes forecasting the demand and also the production planning. The exact analytical solution of the proposed optimal control model is obtained. Also the ability of neural networks to approximate the exact solution is examined, when the analytical solution maybe difficult to calculate. Numerical simulations are provided to illustrate the treatment of proposed model.

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Acknowledgements

The authors would like to thanks the anonymous reviewers for their valuable remarks. This work was supported in part by: Research Deputy of Ferdowsi University of Mashhad, under Grant No. 39098 (dated Feb. 28, 2016).

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Authors and Affiliations

  1. Department of Management, Ferdowsi University of Mashhad, Mashhad, Iran

    Alireza Pooya

  2. Department of Applied Mathematics, Ferdowsi University of Mashhad, Mashhad, Iran

    Morteza Pakdaman

  3. Department of Information Systems and Decision Sciences, Fairleigh Dickinson University, Vancouver, BC, V6B 2P6, Canada

    Lotfi Tadj

Authors
  1. Alireza Pooya
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  2. Morteza Pakdaman
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  3. Lotfi Tadj
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Corresponding author

Correspondence to Alireza Pooya.

Additional information

This work was supported in part by: Research Deputy of Ferdowsi University of Mashhad, under Grant No. 39098 (dated Feb. 28, 2016).

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Pooya, A., Pakdaman, M. & Tadj, L. Exact and approximate solution for optimal inventory control of two-stock with reworking and forecasting of demand. Oper Res Int J 19, 333–346 (2019). https://doi.org/10.1007/s12351-017-0297-6

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  • DOI: https://doi.org/10.1007/s12351-017-0297-6

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