Open Access
Present Value Formulation of Economic Lot-Size Model for Inventory System with Variable Deteriorating Rate of Items
Bhavin J. Shah,Nita H. Shah +1 more
TLDR
In this article, an alternative numerical analysis is described to examine the present value of the discounted costs over an infinite horizon, where the deterioration rate is a continuou s random variable and follows a two parameter weibull distribution.Abstract:
The analysis of the deterministic economic order quantity problem for time dependent deterioration of units seeks to minimize the average cost of inventory systems. An alternative numerical analysis is described in this paper to examine the present value of the discounted costs over an infinite horizon. The deterioration rate is a continuou s random variable and follows a two parameter weibull distribution. Also a sensitivity analysis is studied by some numerical illustrations. Comparison of two solutions is also discussed.read more
Citations
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Deteriorating Inventory Model When Demand Depends on Advertisement and Stock Display
TL;DR: In this paper, a mathematical model is developed to obtain optimal ordering policy of time dependent deteriorating item when demand rate is dependent on displayed stock level and frequency of advertisement through media, the objective is to minimize total cost.
Journal Article
An EOQ model with time dependent deterioration under discounted cash flow approach when supplier credits are linked to order quantity
TL;DR: In this article, the effects of the inflation rate on purchase price, ordering price and inventory holding price, time dependent deterioration of units and permissible delay in payment are discussed, and an inventory model under a situation in which the supplier offers the purchaser some credit period if the purchaser orders a large quantity.
References
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Journal ArticleDOI
Optimal inventory replenishment models for deteriorating items taking account of time discounting
Kun-Jen Chung,Chuan-Neng Lin +1 more
TL;DR: The main purpose of this paper is to establish replenishment models and develop optimal replenishment policies for items having characteristic of deterioration taking account of time value of money.
Journal ArticleDOI
Inventory Control and Trade Credit Revisited
TL;DR: In this paper, the authors presented the discounted cash-flow approach for the analysis of the optimal inventory policy in the presence of the trade credit, which permits a proper recognition of the financial implication of the opportunity cost and out-of-pocket costs in inventory analysis.
Journal ArticleDOI
Evaluating Investment in Inventory Policy: A Net Present Value Framework
TL;DR: In this paper, the authors provide a method for evaluating investment in inventory that is consistent with a wealth maximizing objective, and develop the net present value maximizing models for various inventory systems.
Journal ArticleDOI
Inventory systems for deteriorating items with shortages and a linear trend in demand-taking account of time value
Kun-Jen Chung,Sui-Fu Tsai +1 more
TL;DR: A simple solution algorithm using a line search is presented to determine the optimal interval which has positive inventories and a linear trend in demand taking account of time value.
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Optimal inventory model under stock and time dependent demand for time varying deterioration rate with shortages
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