An inventory model for deteriorating items under stock-dependent demand and controllable deterioration rate

In this paper, we extend the classical economic order quantity model to allow for the demand rate influenced by both selling price and displayed stock level. A finite period system is considered under inflation for deteriorating items. In addition, we impose a ceiling on the number of on-display stocks. We also allow for shortages and general partial backlogging. The objective is to maximize the discounted total profit by finding the optimal replenishment number, replenishment schedule and selling price changed periodically. An effective search procedure is provided to find the optimal solution by employing the properties derived in this paper and particle swarm optimization algorithm. Several numerical examples are used to illustrate the features of the proposed model.

Deterministic ordering policy with price- and stock-dependent demand under fluctuating cost and limited capacity

Optimal replenishment policy for perishable items with stock-dependent selling rate and capacity constraint

In this paper we study a periodic review inventory model with stock dependent demand. When stock on hand is zero, the inventory manager offers a price discount to customers who are willing to backorder their demand. Permissible delay in payments allowed to the inventory manager is also taken into account. Numerical examples are cited to illustrate the model. Keywords : Periodic review model; stock dependent demand; shortage; price discount on backorder; delay in payment. MSC: 90B05. Normal 0 false false false EN-US X-NONE X-NONE /* Style Definitions */
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/pdf/a-periodic-review-inventory-model-with-stock-dependent-gr1jefyde0.pdf

A periodic review inventory model with stock dependent demand, permissible delay in payment and price discount on backorders

In this paper, a computational approach to an inventory model with ramp-type demand and linear deterioration has been presented. With possible cost consideration for the model, the total cost function is constructed and subjected to the optimisation which in turn gives us the system of non-linear equations whose solution is obtained by developing the computing algorithm. Numerical demonstration and sensitivity analysis have been carried out for the model to identify the most sensibilities of various parameters involved in the system.

Computational approach to an inventory model with ramp-type demand and linear deterioration

In this paper a deterministic inventory model is developed for deteriorating items with general rate of deterioration and with stock dependent demand when shortages are observed. Conditions of permissible delay in payments are also taken into consideration. Numerical examples are cited to illustrate the model.

An inventory model with stock dependent demand and general rate of deterioration under conditions of permissible delay in payments

An order-level inventory model is considered with two levels of storage for deteriorating items. When stock level exceeds the capacity of own warehouse (OW), it is to be kept in additional rented warehouse (RW) with higher holding cost than OW. The inventory held in RW is transferred to OW in bulk size (K) where, K is less than the capacity of OW till the stock in RW gets exhausted and there is an associated transportation cost. In developing the model it is assumed that the demand is time-dependent and shortages are allowed.

An order-level inventory model under two level storage system with time- dependent demand

Abstract: In many inventory situations, instead of making immediate payment on receiving the consigument, the purchaser is allowed a certain fixed time period to pay for the goods bought. During this time the supplier charges no interest, but beyond this period interest is charged under the terms and condition agreed upon. As for the purchaser, he can earn interest on the revenue coolected during the credit period. This paper studies a single item inventory model for deteriorating items, when the permissible delay in payment depends on the ordered quantity and shortages are partially backlogged, assuming the backlogging rate to be inversely proportional to the waiting time for the next replenishment. An algorithm has been developed to find the optimal inventory policy. Numerical examples have been cited to illustrate the model. AMS (2000) Subject Classification: 90B05.

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Sanjoy Kumar Ghosh

Papers

An inventory model with stock dependent demand and general rate of deterioration under conditions of permissible delay in payments

An order-level inventory model under two level storage system with time- dependent demand

An Inventory Model for Deteriorating Items with Quantity Dependent Permissible Delay in Payment and Partial Backlogging of Shortage