This paper deals with an inventory model for deteriorating items with inventory dependent demand function. Most of the inventory models are considered with constant rate of deterioration. In this article, we consider time varying deterioration rate. Based on the demand and inventory, the model is considered with three possible cases. We establish the necessary and sufficient conditions for each case to show the existence and uniqueness of the optimal solution. Further, a simple solution algorithm has proposed to obtain the optimal replenishment cycle time and ordering quantity such that the total profit per unit time is maximized. Finally, some numerical examples, sensitivity analysis and graphical representations are provided to illustrate the practical usages of the proposed method.
All Science Journal Classification (ASJC) codes
- Economics and Econometrics