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Multi-item stochastic inventory model for deteriorating items with power demand pattern under partial backlogging and joint replenishment

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  • Sweety Gupta

    (Madan Mohan Malaviya University of Technology)

  • Vinod Kumar Mishra

    (Madan Mohan Malaviya University of Technology)

Abstract

In this paper, we develop a multi-item inventory model with stochastic demand, and the demand is considered as a random variable following a power demand pattern. A cumulative cycle demand is first identified for each product, and then the demand is gradually released to the inventory system by the power patterns within a cycle. The replenishment schedule is predetermined and well-known. Shortages are permitted but partially backlogged, and the rest are taken as lost sales. An effective inventory policy is utilized to reduce the total expected cost per unit of time by acquiring the optimal amount of stock to be stored at the start of the inventory cycle, which may protect against excessive lost sales and also avoid overstocking. This model is better suited for use in online purchases and the offline market where the buyer is assured that the goods will be shipped within a few days rather than at the time of purchase. We evaluated the system with items deteriorating instantaneously, which makes it appropriate to have a larger initial demand with a power pattern index greater than one. Numerical illustrations and sensitivity analysis provide an efficient tool for the insights of the theoretical solutions over the managerial foundation.

Suggested Citation

  • Sweety Gupta & Vinod Kumar Mishra, 2024. "Multi-item stochastic inventory model for deteriorating items with power demand pattern under partial backlogging and joint replenishment," Annals of Operations Research, Springer, vol. 341(2), pages 963-991, October.
    • Handle: RePEc:spr:annopr:v:341:y:2024:i:2:d:10.1007_s10479-024-05997-4
    DOI: 10.1007/s10479-024-05997-4
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    References listed on IDEAS

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    Cited by:

    1. Shivendra Kumar Gupta & Vinod Kumar Mishra, 2025. "Sustainable competition and cooperation: a game-theoretical analysis of substitutable green products," 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. 16(1), pages 234-253, January.

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