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Optimal inventory model under stock and time dependent demand for time varying deterioration rate with shortages

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  • Krishna Prasad

    (Indian School of Mines)

  • Bani Mukherjee

    (Indian School of Mines)

Abstract

Effect of deterioration plays a vital role in present environment of market. In this paper, a deterministic inventory model for deteriorating items having stock and time dependent demand under the effect of deterioration has been studied. A two parameter Weibull distribution has been used to represent the deterioration rate. The present model has been solved analytically to minimize the total cost of the system. The necessary and sufficient conditions for the existence and uniqueness of the optimal solutions which could minimize the retailer’s total cost per unit time has been discussed. Some numerical examples have been carried out to illustrate the developed model.

Suggested Citation

  • Krishna Prasad & Bani Mukherjee, 2016. "Optimal inventory model under stock and time dependent demand for time varying deterioration rate with shortages," Annals of Operations Research, Springer, vol. 243(1), pages 323-334, August.
    • Handle: RePEc:spr:annopr:v:243:y:2016:i:1:d:10.1007_s10479-014-1759-3
    DOI: 10.1007/s10479-014-1759-3
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    References listed on IDEAS

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    8. Kung-Jeng Wang & Yu-Siang Lin, 2012. "Optimal inventory replenishment strategy for deteriorating items in a demand-declining market with the retailer’s price manipulation," Annals of Operations Research, Springer, vol. 201(1), pages 475-494, December.
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    3. Mou, Shandong & Robb, David J. & DeHoratius, Nicole, 2018. "Retail store operations: Literature review and research directions," European Journal of Operational Research, Elsevier, vol. 265(2), pages 399-422.
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    6. Leyla Aliabadi & Seyed Hessameddin Zegordi & Ali Husseinzadeh Kashan & Mohammad Ali Rastegar, 2024. "A sustainable supply chain model for time-varying deteriorating items under the promotional cost-sharing policy and three-level trade credit financing," Operational Research, Springer, vol. 24(2), pages 1-59, June.
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