Optimal replenishment policy for perishable items with stock-dependent selling rate and capacity constraint

In this paper, a deterministic inventory model is developed for deteriorating items with stock-dependent demand and finite shelf/display space. Furthermore, we allow for shortages and the unsatisfied demand is partially backlogged at the exponential rate with respect to the waiting time. We provide solution procedures for finding the maximum total profit per unit time. In a specific circumstance, the model will reduce to the case with no shortage. Further, we use numerical examples to illustrate the model.

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

[2]  K. Skouri,et al.  Optimal stopping and restarting production times for an EOQ model with deteriorating items and time-dependent partial backlogging , 2003 .

[3]  Prakash L. Abad,et al.  Optimal price and order size for a reseller under partial backordering , 2001, Comput. Oper. Res..

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

[5]  Juan García-Laguna,et al.  Analysis of an inventory system with exponential partial backordering , 2006 .

[6]  G. Padmanabhan,et al.  EOQ models for perishable items under stock dependent selling rate , 1995 .

[7]  P. Abad.  Optimal pricing and lot-sizing under conditions of perishability and partial backordering , 1996 .

[8]  Graham K. Rand,et al.  Decision Systems for Inventory Management and Production Planning , 1979 .

[9]  R. Levin.  Production/Operations Management: Contemporary Policy for Managing Operating Systems , 1983 .

[10]  Prakash L. Abad,et al.  Optimal price and order size under partial backordering incorporating shortage, backorder and lost sale costs , 2008 .

[11]  C. Dye.  Joint pricing and ordering policy for a deteriorating inventory with partial backlogging , 2007 .

[12]  Timothy L. Urban.  Inventory models with the demand rate dependent on stock and shortage levels , 1995 .

[13]  Konstantina Skouri,et al.  An optimal replenishment policy for deteriorating items with time-varying demand and partial-exponential type - backlogging , 2000, Oper. Res. Lett..

[14]  Jinn-Tsair Teng,et al.  On "An EOQ model for perishable items under stock-dependent selling rate and time-dependent partial backlogging" by Dye and Ouyang , 2006, Eur. J. Oper. Res..

[15]  Manisha Pal,et al.  An inventory model with stock dependent demand and general rate of deterioration under conditions of permissible delay in payments , 2007 .

[16]  Jinn-Tsair Teng,et al.  An optimal replenishment policy for deteriorating items with time-varying demand and partial backlogging , 2002, Oper. Res. Lett..

[17]  Liang-Yuh Ouyang,et al.  An EOQ model for perishable items under stock-dependent selling rate and time-dependent partial backlogging , 2005, Eur. J. Oper. Res..

[18]  L. Ouyang,et al.  An optimal replenishment policy for non-instantaneous deteriorating items with stock-dependent demand and partial backlogging , 2006 .

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