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Optimal inventory model under stock and time dependent demand for time varying deterioration rate with shortages

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  • Krishna Prasad

    (Indian School of Mines)

  • Bani Mukherjee

    (Indian School of Mines)

Abstract

Effect of deterioration plays a vital role in present environment of market. In this paper, a deterministic inventory model for deteriorating items having stock and time dependent demand under the effect of deterioration has been studied. A two parameter Weibull distribution has been used to represent the deterioration rate. The present model has been solved analytically to minimize the total cost of the system. The necessary and sufficient conditions for the existence and uniqueness of the optimal solutions which could minimize the retailer’s total cost per unit time has been discussed. Some numerical examples have been carried out to illustrate the developed model.

Suggested Citation

  • Krishna Prasad & Bani Mukherjee, 2016. "Optimal inventory model under stock and time dependent demand for time varying deterioration rate with shortages," Annals of Operations Research, Springer, vol. 243(1), pages 323-334, August.
    • Handle: RePEc:spr:annopr:v:243:y:2016:i:1:d:10.1007_s10479-014-1759-3
    DOI: 10.1007/s10479-014-1759-3
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    References listed on IDEAS

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    7. Kung-Jeng Wang & Yu-Siang Lin, 2012. "Optimal inventory replenishment strategy for deteriorating items in a demand-declining market with the retailer’s price manipulation," Annals of Operations Research, Springer, vol. 201(1), pages 475-494, December.
    8. Yang, Hui-Ling, 2012. "Two-warehouse partial backlogging inventory models with three-parameter Weibull distribution deterioration under inflation," International Journal of Production Economics, Elsevier, vol. 138(1), pages 107-116.
    9. 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.
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    Cited by:

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    3. Luis A. San-José & Joaquín Sicilia & Manuel González-De-la-Rosa & Jaime Febles-Acosta, 2020. "Best pricing and optimal policy for an inventory system under time-and-price-dependent demand and backordering," Annals of Operations Research, Springer, vol. 286(1), pages 351-369, March.
    4. Luis A. San-José & Joaquín Sicilia & Manuel González-de-la-Rosa & Jaime Febles-Acosta, 2022. "Profit maximization in an inventory system with time-varying demand, partial backordering and discrete inventory cycle," Annals of Operations Research, Springer, vol. 316(2), pages 763-783, September.
    5. Mou, Shandong & Robb, David J. & DeHoratius, Nicole, 2018. "Retail store operations: Literature review and research directions," European Journal of Operational Research, Elsevier, vol. 265(2), pages 399-422.
    6. Ata Allah Taleizadeh & Sara Tavassoli & Arijit Bhattacharya, 2020. "Inventory ordering policies for mixed sale of products under inspection policy, multiple prepayment, partial trade credit, payments linked to order quantity and full backordering," Annals of Operations Research, Springer, vol. 287(1), pages 403-437, April.

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