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Maximum-Profit Inventory Model with Generalized Deterioration Rate

Author

Listed:
  • Yu-Lan Wang

    (College of Teacher Education, Weifang University of Science and Technical, Weifang 262799, China)

  • Ming-Li Chen

    (School of Intelligent Manufacturing, Weifang University of Science and Technical, Weifang 262799, China)

  • Peterson Julian

    (School of General Studies, Weifang University of Science and Technical, Weifang 262799, China)

Abstract

We developed a maximum profit inventory model with a generalized deterioration rate where the selling rate is dependent on the inventory level that is an extension of two published papers. A complete solution structure is provided to decide the optimal solution with reasonable conditions supported by numerical examples, and then we prove that the optimal solution is independent of the demand pattern. Numerical examples are provided to illustrate our findings. In a previously published paper, three examples had symmetric conditions to decide the local maximum solution. Our approach provides a reasonable explanation for this symmetric phenomenon. Our findings will help researchers develop new inventory models in the future.

Suggested Citation

  • Yu-Lan Wang & Ming-Li Chen & Peterson Julian, 2022. "Maximum-Profit Inventory Model with Generalized Deterioration Rate," Mathematics, MDPI, vol. 10(17), pages 1-14, September.
    • Handle: RePEc:gam:jmathe:v:10:y:2022:i:17:p:3189-:d:906222
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    References listed on IDEAS

    as
    1. Tiwari, Sunil & Cárdenas-Barrón, Leopoldo Eduardo & Goh, Mark & Shaikh, Ali Akbar, 2018. "Joint pricing and inventory model for deteriorating items with expiration dates and partial backlogging under two-level partial trade credits in supply chain," International Journal of Production Economics, Elsevier, vol. 200(C), pages 16-36.
    2. Hung, Kuo-Chen, 2011. "An inventory model with generalized type demand, deterioration and backorder rates," European Journal of Operational Research, Elsevier, vol. 208(3), pages 239-242, February.
    3. Abu Hashan Md Mashud & Dipa Roy & Yosef Daryanto & Mohd Helmi Ali, 2020. "A Sustainable Inventory Model with Imperfect Products, Deterioration, and Controllable Emissions," Mathematics, MDPI, vol. 8(11), pages 1-21, November.
    4. Manna, S.K. & Chaudhuri, K.S., 2006. "An EOQ model with ramp type demand rate, time dependent deterioration rate, unit production cost and shortages," European Journal of Operational Research, Elsevier, vol. 171(2), pages 557-566, June.
    5. Lin, Shih-Wei, 2011. "Inventory models with managerial policy independent of demand," European Journal of Operational Research, Elsevier, vol. 211(3), pages 520-524, June.
    6. Alım, Muzaffer & Beullens, Patrick, 2020. "Joint inventory and distribution strategy for online sales with a flexible delivery option," International Journal of Production Economics, Elsevier, vol. 222(C).
    7. Deng, Peter Shaohua & Lin, Robert H.-J. & Chu, Peter, 2007. "A note on the inventory models for deteriorating items with ramp type demand rate," European Journal of Operational Research, Elsevier, vol. 178(1), pages 112-120, April.
    Full references (including those not matched with items on IDEAS)

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