Inventory Model for Deteriorating Items with Four level System and Shortages

This paper presents an inventory model for deteriorating items in which shortages are allowed. It is assumed that the production rate is proportional to the demand rate. The production rate is considered to be greater than demand rate. The inventory model is developed by considering four different circumstances. The optimal of the problem is obtained with the help of Mathematica 7 software. Numerical example is given to illustrate the model. Sensitivity analysis of the model has been developed to examine the effect of changes in the values of the different parameters for optimal inventory policy.

[1]  Ritu Sharma,et al.  A two-warehouse inventory model for deteriorating items under permissible delay in payment with partial backlogging , 2014, Appl. Math. Comput..

[2]  Yue Wu,et al.  A two-echelon inventory model for a deteriorating item with stock-dependent demand, partial backlogging and capacity constraints , 2013, Eur. J. Oper. Res..

[3]  R. P. Tripathi,et al.  An EOQ Model for Deteriorating Items with Weibull Time-Dependent Demand Rate under Trade Credits , 2013 .

[4]  Hardik N. Soni.  Optimal replenishment policies for non-instantaneous deteriorating items with price and stock sensitive demand under permissible delay in payment , 2013 .

[5]  L. Ouyang,et al.  Optimal production lot with imperfect production process under permissible delay in payments and complete backlogging , 2013 .

[6]  Timothy L. Urban.  An extension of inventory models incorporating financing agreements with both suppliers and customers , 2012 .

[7]  J. Teng,et al.  Economic order quantity model with trade credit financing for non-decreasing demand , 2012 .

[8]  U. Mishra,et al.  Ordering Policy for Linear Deteriorating Items for Declining Demand with Permissible Delay in Payments , 2012 .

[9]  Biswajit Sarkar,et al.  An EOQ model with delay in payments and time varying deterioration rate , 2012, Math. Comput. Model..

[10]  R. Tripathi.  Inventory Model with Time Dependent Demand Rate under Inflation When Supplier Credit Linked to Order Quantity , 2011 .

[11]  R. P. Tripathi,et al.  EOQ Model with Time Dependent Demand Rate and Time Dependent Holding Cost Function , 2011, Int. J. Oper. Res. Inf. Syst..

[12]  Zhao Pei-xin,et al.  An EOQ Model for Items with Weibull Distribution Deterioration , 2007, 2007 2nd IEEE Conference on Industrial Electronics and Applications.

[13]  S. Goyal,et al.  Optimal pricing and ordering policy under permissible delay in payments , 2005 .

[14]  Horng-Jinh Chang,et al.  An inventory model for deteriorating items with linear trend demand under the condition of permissible delay in payments , 2001 .

[15]  K. S. Chaudhuri,et al.  An EOQ model for items with weibull distribution deterioration, shortages and trended demand: an extension of philip's model , 1998, Comput. Oper. Res..

[16]  K. Chaudhuri,et al.  An EOQ model with stock-dependent demand, shortage, inflation and time discounting , 1997 .

[17]  T. Datta,et al.  Effects of inflation and time-value of money on an inventory model with linear time-dependent demand rate and shortages , 1991 .

[18]  T. Datta,et al.  A Note on an Inventory Model with Inventory-level-dependent Demand Rate , 1990 .

[19]  B. Mandal,et al.  An Inventory Model for Deteriorating Items and Stock-dependent Consumption Rate , 1989 .

[20]  Timothy L. Urban,et al.  A Deterministic Inventory System with an Inventory-Level-Dependent Demand Rate , 1988 .

[21]  K. Chaudhuri,et al.  A Note on the Heuristic for Replenishment of Trended Inventories Considering Shortages , 1987 .

[22]  S. Goyal.  Economic Order Quantity under Conditions of Permissible Delay in Payments , 1985 .

[23]  R. Misra.  A note on optimal inventory management under inflation , 1979 .

[24]  George C. Philip,et al.  A Generalized EOQ Model for Items with Weibull Distribution Deterioration , 1974 .

[25]  P. Julian,et al.  A demand independent inventory model , 2013 .

[26]  M. K. Meher.  An Inventory Model with Weibull Deterioration Rate under the Delay in Payment in Demand Decling Market , 2012 .

[27]  Manoj Kumar,et al.  Credit financing in economic ordering policies of time-dependent deteriorating items , 2011 .

[28]  R. Tripathi,et al.  A Cash Flow Oriented EOQ Model of Deteriorating Items with Time- Dependent Demand Rate under Permissible Delay in Payments , 2011 .

[29]  Maw-Sheng Chern,et al.  An inventory model under inflation for deteriorating items with stock-dependent consumption rate and partial backlogging shortages , 2010 .

[30]  Kun-Jen Chung.  A theorem on the determination of economic order quantity under conditions of permissible delay in payments , 1998, Comput. Oper. Res..

[31]  S. Aggarwal,et al.  Ordering Policies of Deteriorating Items under Permissible Delay in Payments , 1995 .

[32]  R. Misra,et al.  Optimum production lot size model for a system with deteriorating inventory , 1975 .