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Variable deterioration and demand—An inventory model

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  • Sarkar, Biswajit
  • Sarkar, Sumon

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.

Suggested Citation

  • Sarkar, Biswajit & Sarkar, Sumon, 2013. "Variable deterioration and demand—An inventory model," Economic Modelling, Elsevier, vol. 31(C), pages 548-556.
    • Handle: RePEc:eee:ecmode:v:31:y:2013:i:c:p:548-556
    DOI: 10.1016/j.econmod.2012.11.045
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    References listed on IDEAS

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    Cited by:

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    3. Biswajit Sarkar & Sharmila Saren & Leopoldo Cárdenas-Barrón, 2015. "An inventory model with trade-credit policy and variable deterioration for fixed lifetime products," Annals of Operations Research, Springer, vol. 229(1), pages 677-702, June.
    4. Priyanka & Sarla Pareek, 2023. "A sustainable inventory model for stochastic demand using innovative multi-item production system with reduced failure rate," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 14(3), pages 844-864, June.
    5. Nita H. Shah & Mrudul Y. Jani & Urmila Chaudhari, 2018. "Optimal replenishment time for retailer under partial upstream prepayment and partial downstream overdue payment for quadratic demand," Mathematical and Computer Modelling of Dynamical Systems, Taylor & Francis Journals, vol. 24(1), pages 1-11, January.
    6. Pal, Shilpi & Mahapatra, G.S. & Samanta, G.P., 2015. "A production inventory model for deteriorating item with ramp type demand allowing inflation and shortages under fuzziness," Economic Modelling, Elsevier, vol. 46(C), pages 334-345.
    7. Satya Kumar Das, 2022. "A Fuzzy Multi Objective Inventory Model with Production Cost and Set-up-Cost Dependent on Population," Annals of Data Science, Springer, vol. 9(3), pages 627-643, June.
    8. Chaman Singh & Gurudatt Rao Ambedkar, 2023. "Optimizing EOQ model for expiring items with stock, selling cost and lifetime dependent demand under inflation," OPSEARCH, Springer;Operational Research Society of India, vol. 60(1), pages 174-187, March.
    9. Cong Zheng & Quangui Pang & Tianpei Li & Guizheng Wang & Yiji Cai & Lei Yang, 2019. "The Farmers’ Channel Selection and Sustainable Analysis under Carbon Tax Policy," Sustainability, MDPI, vol. 11(10), pages 1-24, May.

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