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An inventory model for deteriorating items with shortages and time-varying demand

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  • Sicilia, Joaquín
  • González-De-la-Rosa, Manuel
  • Febles-Acosta, Jaime
  • Alcaide-López-de-Pablo, David

Abstract

A deterministic inventory system for items with a constant deterioration rate is studied. Demand varies in time and it is assumed that it follows a power pattern. Shortages are allowed and backlogged. The ordering cost, the holding cost, the backlogging cost, the deteriorating cost, and the purchasing cost are considered in the inventory management. An approach is proposed to minimize the total cost per inventory cycle. This cost depends on two decision variables: the time at which the inventory level falls to zero and the length of the scheduling period. Numerical examples illustrate the theoretical results.

Suggested Citation

  • Sicilia, Joaquín & González-De-la-Rosa, Manuel & Febles-Acosta, Jaime & Alcaide-López-de-Pablo, David, 2014. "An inventory model for deteriorating items with shortages and time-varying demand," International Journal of Production Economics, Elsevier, vol. 155(C), pages 155-162.
    • Handle: RePEc:eee:proeco:v:155:y:2014:i:c:p:155-162
    DOI: 10.1016/j.ijpe.2014.01.024
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    References listed on IDEAS

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    2. Abu Hashan Md Mashud & Dipa Roy & Yosef Daryanto & Mohd Helmi Ali, 2020. "A Sustainable Inventory Model with Imperfect Products, Deterioration, and Controllable Emissions," Mathematics, MDPI, vol. 8(11), pages 1-21, November.
    3. Cheng-Fu Huang, 2019. "Evaluation of system reliability for a stochastic delivery-flow distribution network with inventory," Annals of Operations Research, Springer, vol. 277(1), pages 33-45, June.
    4. Cheng-Fu Huang, 2022. "System reliability for a multi-state distribution network with multiple terminals under stocks," Annals of Operations Research, Springer, vol. 311(1), pages 117-130, April.
    5. Sudarshan Bardhan & Haimanti Pal & Bibhas Chandra Giri, 2019. "Optimal replenishment policy and preservation technology investment for a non-instantaneous deteriorating item with stock-dependent demand," Operational Research, Springer, vol. 19(2), pages 347-368, June.

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