Recent trends in modeling of deteriorating inventory

https://isiarticles.com/bundles/Article/pre/pdf/19182.pdf

Economic production quantity model for items with imperfect quality

In many inventory situations, the purchaser is allowed a permissible period to pay back the cost of goods bought without paying any interest. Depending on the length of that payment period, the purchaser can earn interest on the sales of the inventory. This paper develops a model to determine an optimal ordering policy for deteriorating items under permissible delay of payment and allowable shortage. Different facets of the permissible delays in payment are discussed, and this generalized model exhibits a set of solutions that reduces to an existing model. Results are discussed and demonstrated with an illustrative example.

An ordering policy for deteriorating items with allowable shortage and permissible delay in payment

This paper studies the effect of imperfect quality items on the finite production model. When production stops, defective items are assumed to be reworked at a constant rate. The percentage of imperfect quality items is considered to be a random variable with a known probability density function. The demand for the initial perfect items and the perfect items being reworked is continuous during the cycle. The optimal operating policy that minimizes the total inventory cost per unit time for the finite production model under the effect of imperfect quality is derived where shortages are allowed and backordered.

Production lot sizing with the reworking of imperfect quality items produced

https://isiarticles.com/bundles/Article/pre/pdf/21833.pdf

Optimal payment time for a retailer under permitted delay of payment by the wholesaler

An economic order quantity (EOQ) inventory model for deteriorating goods is developed with a linear, positive trend in demand allowing inventory shortages and backlogging. The effects of inflation and the time-value of money are incorporated into the model, considering two separate inflation rates: namely, the internal (company) inflation rate and the external (general economy) inflation rate. It is assumed that the goods in the inventory deteriorate over time at a constant rate θ. The inventory policy is discussed over a finite time-horizon with several reorder points. The results are discussed with a numerical example and a sensitivity analysis of the optimal solution with respect to the parameters of the system is carried out. Several particular cases of the model are discussed in brief.

https://link.springer.com/content/pdf/10.1057%2Fjors.1995.107.pdf

S. Bose

Papers

An EOQ Model for Deteriorating Items with Linear Time-dependent Demand Rate and Shortages Under Inflation and Time Discounting