Solving the optimal order quantity for an inventory system with unknown parameter values——Based on stock-dependent demand rate

  • GUO Zhanbing ,
  • ZHANG Yejie
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  • College of Economics and Management, Hebei University of Technology, Tianjin 300401, China

Received date: 2024-09-05

  Online published: 2026-06-12

Abstract

Considering the difficulty in obtaining the accurate parameter values in the inventory models, this paper provides a two-stage ordering strategy for one kind of inventory system, where the demand rate depends on the inventory level. By constructing a dynamic order quantity and analyzing its related properties, this two-stage order strategy realizes the estimation of critical value for control parameter, and finally obtains the optimal order quantity. Moreover, this two-stage ordering strategy not only draws on the simple mathematical form of the classic EOQ model, but also does not require the retailer to know the exact model parameter values in advance. Theoretical analysis and numerical simulation demonstrate the feasibility of this strategy. Sensitivity analysis further provides the impact of the estimation error of the control parameter critical value on the effectiveness of this strategy, and the results show that this two-stage ordering strategy is robust to the misestimation of critical value for control parameter.

Cite this article

GUO Zhanbing , ZHANG Yejie . Solving the optimal order quantity for an inventory system with unknown parameter values——Based on stock-dependent demand rate[J]. Operations Research Transactions, 2026 , 30(2) : 149 -158 . DOI: 10.15960/j.cnki.issn.1007-6093.2026.02.011

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