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Optimal replenishment policy and preservation technology investment for a non-instantaneous deteriorating item with stock-dependent demand

Author

Listed:
  • Sudarshan Bardhan

    (Krishnagar Women’s College)

  • Haimanti Pal

    (Jadavpur University)

  • Bibhas Chandra Giri

    (Jadavpur University)

Abstract

An inventory model with stock-dependent demand and non-instantaneous deterioration is developed in this paper. It is assumed that the item starts deteriorating at a constant rate after a certain period of time from the instant of receiving the delivery by the retailer. The retailer can reduce the rate of deterioration by investing in preservation technology. Depending on the fact that the on-hand stock may be finished before or after deterioration starts, two different inventory scenarios have been considered and analyzed. Optimal length of an inventory cycle as well as investment in preservation technology have been obtained in both the scenarios. Certain conditions have also been derived to identify situations where the retailer should or should not invest in preservation technology. The proposed model is illustrated with a numerical example.

Suggested Citation

  • Sudarshan Bardhan & Haimanti Pal & Bibhas Chandra Giri, 2019. "Optimal replenishment policy and preservation technology investment for a non-instantaneous deteriorating item with stock-dependent demand," Operational Research, Springer, vol. 19(2), pages 347-368, June.
    • Handle: RePEc:spr:operea:v:19:y:2019:i:2:d:10.1007_s12351-017-0302-0
    DOI: 10.1007/s12351-017-0302-0
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    References listed on IDEAS

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    Cited by:

    1. Liu, Aijun & Zhu, Qiuyun & Xu, Lei & Lu, Qiang & Fan, Youqing, 2021. "Sustainable supply chain management for perishable products in emerging markets: An integrated location-inventory-routing model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 150(C).
    2. Priyamvada & Prerna Gautam & Aditi Khanna, 2021. "Sustainable production strategies for deteriorating and imperfect quality items with an investment in preservation technology," 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. 12(5), pages 910-918, October.
    3. Subhendu Ruidas & Mijanur Rahaman Seikh & Prasun Kumar Nayak, 2022. "A production-repairing inventory model considering demand and the proportion of defective items as rough intervals," Operational Research, Springer, vol. 22(3), pages 2803-2829, July.
    4. Nita H. Shah & Pratik H. Shah & Milan B. Patel, 2021. "Retailer’s inventory decisions with promotional efforts and preservation technology investments when supplier offers quantity discounts," OPSEARCH, Springer;Operational Research Society of India, vol. 58(4), pages 1116-1132, December.
    5. Chaitanyakumar N. Rapolu & Deepa H. Kandpal, 2020. "Joint pricing, advertisement, preservation technology investment and inventory policies for non-instantaneous deteriorating items under trade credit," OPSEARCH, Springer;Operational Research Society of India, vol. 57(2), pages 274-300, June.
    6. Vandana & A. K. Das, 2022. "Two-warehouse supply chain model under preservation technology and stochastic demand with shortages," OPSEARCH, Springer;Operational Research Society of India, vol. 59(4), pages 1587-1612, December.

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