This paper expands an inventory model for deteriorating items with stock-dependent demand. This model provides time varying backlogging rate as well as time varying deterioration rate. The aim of this model is to determine the optimal cycle length of each product such that the expected total cost (holding, shortage, ordering, deterioration and opportunity cost) is minimized. Further, the necessary and sufficient conditions are provided to show the existence and uniqueness of the optimal solution. Lastly, some numerical examples, sensitivity analysis along with graphical representations are shown to illustrate the practical application of the proposed model.
All Science Journal Classification (ASJC) codes
- Economics and Econometrics