Variable deterioration and demand-An inventory model

Biswajit Sarkar, Sumon Sarkar

Research output: Contribution to journalArticle

38 Citations (Scopus)

Abstract

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.

Original languageEnglish
Pages (from-to)548-556
Number of pages9
JournalEconomic Modelling
Volume31
Issue number1
DOIs
Publication statusPublished - 2013 Mar 1

Fingerprint

Deterioration
Inventory model
Replenishment
Profit
Time-varying
Optimal solution
Cycle time
Sensitivity analysis
Demand function
Deteriorating items
Uniqueness

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

Cite this

Sarkar, Biswajit ; Sarkar, Sumon. / Variable deterioration and demand-An inventory model. In: Economic Modelling. 2013 ; Vol. 31, No. 1. pp. 548-556.
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Variable deterioration and demand-An inventory model. / Sarkar, Biswajit; Sarkar, Sumon.

In: Economic Modelling, Vol. 31, No. 1, 01.03.2013, p. 548-556.

Research output: Contribution to journalArticle

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