A Deteriorating Inventory Model with Uniformly Distributed Random Demand and Completely Backlogged Shortages

Abstract

This paper proposes a deteriorating inventory model with random demand with shortages. Shortages are permitted and treated as to be fully backlogged. Deterioration rate is constant. Demand of the items is a nonstop irregular variable, which pursues the uniform likelihood dispersion. Based on these assumptions, a mathematical model for the optimization of average total cost (ATC) function of the problem is formulated. Two numerical examples are presented. The convexity of the average total cost function is verified graphically. To measure the flexibility of the present model; the post-optimal analysis is applied by changing parameters.