Deteriorating inventory model for time dependent demand and holding cost with partial backlogging
01 Jan 2011-international journal of management science and engineering management (INTERNATIONAL JOURNAL OF MANAGEMENT SCIENCE AND ENGINEERING MANAGEMENT)-Vol. 6, Iss: 4, pp 267-271
TL;DR: In this article, a deterministic deteriorating inventory model was developed in which demand rate and holding cost both is linear function of time, deterioration rate is constant, backlogging rate is variable and depend on the length of the next replenishment, shortages are allowed and partially backlogged.
Abstract: In most of the deteriorating items inventory model the holding cost and demand rate has considered as a constant function. But in realistic situation these cost varying according to time. So in this paper, we developed a deterministic deteriorating inventory model in which demand rate and holding cost both is linear function of time, deterioration rate is constant, backlogging rate is variable and depend on the length of the next replenishment, shortages are allowed and partially backlogged. The model is solved analytically by minimizing the total inventory cost. The model is tested for a set of parameter and results indicate that the model is quite stable. The model can be applied for optimizing the total inventory cost of deteriorating items inventory for a business enterprise where demand and holding cost both is linear function of time.
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TL;DR: The results show that the optimal conditions ensuring the affordability of the food recovery strategy including the tax reliefs and cost saving for the retailers outperforms the profit achievable in absence of such a system.
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TL;DR: In this article, a deterministic inventory model with time-dependent demand and time-varying holding cost where deterioration is time proportional is considered, and the model is solved analytically by minimizing the total inventory cost.
Abstract: In this paper, we considered a deterministic inventory model with time-dependent demand and time-varying holding cost where deterioration is time proportional. The model considered here allows for shortages, and the demand is partially backlogged. The model is solved analytically by minimizing the total inventory cost. The result is illustrated with numerical example for the model. The model can be applied to optimize the total inventory cost for the business enterprises where both the holding cost and deterioration rate are time dependent.
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Cites background from "Deteriorating inventory model for t..."
...Mishra and Shing (2011) have described an inventory model to minimize the inventory cost, where the model takes into account time-dependent demand, holding cost and deterioration....
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TL;DR: This article reviewed and classified EOQ and EPQ inventory models formulated under the assumption of variable holding costs and classified them into three main types: time-dependent holding cost, stock dependent holding cost and multiple dependence or other holding cost variability.
Abstract: In production-inventory control, economic order quantity (EOQ) and economic production quantity (EPQ) models are used to determine the optimal order quantities for purchasing and manufacturing. Most EOQ and EPQ models are constructed assuming constant costs. Recently, however, EOQ/EPQ models assuming varying costs (i.e., holding, ordering, and purchasing costs) have been receiving considerable attention. The objective of this paper is to review and classify EOQ and EPQ inventory models formulated under the assumption of variable holding costs. The relevant papers are reviewed and classified into three main types: time-dependent holding cost, stock-dependent holding cost, and multiple dependence or other holding cost variability. Additional classification is proposed for the reviewed models according to their objectives, solution methods, and applications. The paper identifies research trends and includes several suggestions for future research directions.
31 citations
18 Jan 2012
TL;DR: In this article, a deterministic inventory model is developed for deteriorating items in which shortages are allowed and salvage value is incorporated to the deteriorated items, and the model is solved analytically by minimizing the total inventory cost.
Abstract: In this paper, a deterministic inventory model is developed for deteriorating items in which shortages are allowed and salvage value is incorporated to the deteriorated items. In this model the demand rate is constant, deterioration rate is time dependent with weibull’s distribution and holding cost is a linear function of time. The model is solved analytically by minimizing the total inventory cost. Numerical analysis is provided to illustrate the solution and application of the model. The model can be applied to optimizing the total inventory cost for the business enterprises where holding cost and deterioration rate both are time dependent and salvage value is incorporated to the deteriorated items.
28 citations
Cites methods from "Deteriorating inventory model for t..."
...In this paper, we made the paper of Sarala Pareek & Vinod Kumar [2009] and Mishra & Singh [2011] more realistic by considering that the salvage value is incorporated to the deteriorated items and holding cost is linear function of time and developed an inventory model for deteriorating items with time dependent deterioration rate in which demand rate is constant....
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References
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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.
1,247 citations
"Deteriorating inventory model for t..." refers background in this paper
...Goyal and Giri (2001) [10] gave recent trends of modeling in deteriorating items inventory....
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01 Jan 1963
710 citations
"Deteriorating inventory model for t..." refers background in this paper
...Ghare and Schrader (1963) [9] extended the classical EOQ formula with exponential decay of inventory due to deterioration and gave a mathematical model of inventory of deteriorating items....
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TL;DR: In this article, an EOQ model is reconsidered in which the demand rate is changing linearly with time and the deterioration is assumed to be a constant fraction of the onhand inventory.
Abstract: An EOQ model is reconsidered here in which the demand rate is changing linearly with time and the deterioration is assumed to be a constant fraction of the onhand inventory The planning horizon is finite and known and the replenishment periods are assumed to be constant The problem is to find the optimal number of replenishments, which are instantaneous When there is no deterioration, the model developed is related to the corresponding model for nondeteriorating items An example followed by sensitivity analysis is given to illustrate the derived results
424 citations
"Deteriorating inventory model for t..." refers background in this paper
...Dave and Patel (1981) [5] developed the first deteriorating inventory model with linear trend in demand....
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TL;DR: In this article, a generalized model of dynamic pricing and lot-sizing by a reseller who sells a perishable good is formulated, where when it is economic to backlog demand, the reseller can plan for periods of shortage during which demand can be partially backordered.
Abstract: We formulate a generalized model of dynamic pricing and lot-sizing by a reseller who sells a perishable good. We assume that when it is economic to backlog demand, the reseller can plan for periods of shortage during which demand can be partially backordered. When the good is highly perishable, the reseller may need to backlog demand in order to market the good at a reasonable price. We present a simple solution procedure for solving the optimization problem. The procedure entails solving first a single nonlinear equation and then, if required, two nonlinear equations.
407 citations
"Deteriorating inventory model for t..." refers background in this paper
...They made Abad (1996, 2001) [1, 2] more realistic and applicable in practice....
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TL;DR: This paper focuses on the effect of the backlogging rate on the economic order quantity decision and Numerical examples are presented to illustrate the model.
Abstract: In the classical economic order quantity model, it is often assumed that the shortages are either completely backlogged or completely lost. However, in some inventory systems, it is more reasonable to assume that the backlogging rate is dependent on the length of the waiting time for the next replenishment. The longer the waiting time is, the smaller the backlogging rate would be. In this paper, we focus on the effect of the backlogging rate on the economic order quantity decision. Numerical examples are presented to illustrate the model.
299 citations