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

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TLDR
In this article, an economic order quantity (EOQoQ) inventory model for deteriorating goods is developed with a linear, positive trend in demand allowing inventory shortages and backlogging.
Abstract
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.

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Citations
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Journal ArticleDOI

Recent trends in modeling of deteriorating inventory

TL;DR: The motivations, extensions and generalizations of various models in each sub-class have been discussed in brief to bring out pertinent information regarding model developments in the last decade.
Journal ArticleDOI

Economic production quantity model for items with imperfect quality

TL;DR: In this article, the authors extended the traditional economic production quantity model by accounting for imperfect quality items when using the EPQ/EOQ formulae, and considered the issue that poor-quality items are sold as a single batch by the end of the 100% screening process.
Journal ArticleDOI

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

TL;DR: In this article, a model to determine an optimal ordering policy for deteriorating items under a permissible delay of payment and allowable shortage was developed, and different facets of the permissible delays in payment were discussed, and this generalized model exhibits a set of solutions that reduces to an existing model.
Journal ArticleDOI

Production lot sizing with the reworking of imperfect quality items produced

TL;DR: In this article, the effect of imperfect quality items on the finite production model was studied. And the optimal operating policy that minimizes the total inventory cost per unit time was derived where shortages are allowed and backordered.
Journal ArticleDOI

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

TL;DR: In this paper, the authors developed a retailer's model for optimal cycle and payment times for a retailer in a deteriorating-item inventory situation where a wholesaler allows a specified credit period to the retailer for payment without penalty.
References
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Journal ArticleDOI

Survey of Literature on Continuously Deteriorating Inventory Models

TL;DR: A complete and up-to-date survey of published inventory literature for the deteriorating (decaying) inventory models and a classification scheme is presented along with suggestions for future research.
Journal ArticleDOI

An EOQ Model for Items with Weibull Distribution Deterioration

TL;DR: In this paper, an inventory model is considered for deteriorating items with a variable rate of deterioration, where deterioration means decay, damage or spoilage such that the item cannot be used for its original purpose.
Journal ArticleDOI

Economic Order Quantities with Inflation

TL;DR: In this article, it is shown that with inflation the choice of the inventory carrying charge used in the EOQ formula can be changed with respect to all relevant costs and prices.
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