An inventory model for deteriorating items with stock-dependent demand and time-value of money when credit period is provided

In this paper, a deterministic inventory model is developed for deteriorating items with stock-dependent demand and shortages. The conditions of permissible delay in payments and time-value of money are also taken into consideration. The replenishment number and the fraction of each cycle in which there is no shortage are both determined so as to minimize the present value of inventory cost over a finite planning horizon. Two special cases and numerical examples are presented to illustrate the model.

[1]  C. V. Balan,et al.  An order-level lot size inventory model with inventory-level dependent demand and deterioration , 1997 .

[2]  Hui-Ming Wee,et al.  Economic production lot size for deteriorating items taking account of the time-value of money , 1999, Comput. Oper. Res..

[3]  Shaojun Wang,et al.  Supply chain models for perishable products under inflation and permissible delay in payment , 2000, Comput. Oper. Res..

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

[5]  K. S. Chaudhuri,et al.  Deterministic models of perishable inventory with stock-dependent demand rate and nonlinear holding cost , 1998, Eur. J. Oper. Res..

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

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

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

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

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

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

[12]  J. Buzacott.  Economic Order Quantities with Inflation , 1975 .

[13]  M. Goh.  EOQ models with general demand and holding cost functions , 1994 .

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

[15]  Kee H. Chung.  Inventory Control and Trade Credit Revisited , 1989 .

[16]  B. Sarker,et al.  An ordering policy for deteriorating items with allowable shortage and permissible delay in payment , 1997 .

[17]  Hung-Chang Liao,et al.  An inventory model with deteriorating items under inflation when a delay in payment is permissible , 2000 .

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

[19]  Hark Hwang,et al.  Joint price and lot size determination under conditions of permissible delay in payments and quantity discounts for freight cost , 1996 .

[20]  M. Maiti,et al.  Inventory of damagable items with variable replenishment rate, stock-dependent demand and some units in hand , 1999 .