Abstract
Article history: Received November 2 2013 Received in Revised Format 10 January 2014 Accepted February 8 2014 Available online February 21 2014 In this paper, an attempt is made to develop two inventory models for deteriorating items with variable demand dependent on the selling price and frequency of advertisement of items. In the first model, shortages are not allowed whereas in the second, these are allowed and partially backlogged with a variable rate dependent on the duration of waiting time up to the arrival of next lot. In both models, the deterioration rate follows three-parameter Weibull distribution and the transportation cost is considered explicitly for replenishing the order quantity. This cost is dependent on the lot-size as well as the distance from the source to the destination. The corresponding models have been formulated and solved. Two numerical examples have been considered to illustrate the results and the significant features of the results are discussed. Finally, based on these examples, the effects of different parameters on the initial stock level, shortage level (in case of second model only), cycle length along with the optimal profit have been studied by sensitivity analyses taking one parameter at a time keeping the other parameters as same. © 2014 Growing Science Ltd. All rights reserved
Highlights
According to the existing literature of inventory control system, most of the inventory models have been developed under the assumption that the life time of an item is infinite while it is in storage i.e., an item once in stock remains unchanged and fully usable for satisfying future demand
Misra (1975) developed an EOQ model with weibull deterioration rate for perishable product without considering shortages. These investigations were followed by several researchers like, Deb and Chaudhari (1986), Giri et al (1996), Goswami and Chaudhari (1991), Mandal and Phaujdar (1989a), Padmanabhan and Vrat (1995), Pal et al(1993), Mandal and Maiti (1997), Goyal and Gunasekaran (1995), Sarkar et al(1997), Bhunia and Maiti (1998a,1998b), Pal et al (2005, 2006), Mishra and Tripathy (2010), Kawale and Bansode (2012), Bhunia et al (2013a, 2013b), Sharma and Chaudhary (2013), Amutha and Chandrasekaran (2013) etc., where a time-proportional deterioration rate was considered
We have developed two inventory models for deteriorating items with variable demand dependent on the selling price of items and frequency of advertisement of items
Summary
According to the existing literature of inventory control system, most of the inventory models have been developed under the assumption that the life time of an item is infinite while it is in storage i.e., an item once in stock remains unchanged and fully usable for satisfying future demand. Subramanyam and Kumaraswamy (1971), Urban (1992), Goyal and Gunasekaran (1995), Abad (1996) and Luo (1998), Pal et al (2007), Bhunia and Shaikh (2011) developed inventory models incorporating the effects of price variations and advertisement on demand rate of an item. We have developed two inventory models for deteriorating items with variable demand dependent on the selling price of items and frequency of advertisement of items. Variable rate dependent on the duration of waiting time up to the arrival of lot In both the models, the deterioration rate follows a three-parameter Weibull distribution and the transportation cost is considered explicitly for replenishing the order quantity. Based on these examples, the effects of different parameters on the initial stock level, shortage level (in case of second model only), cycle length along with the optimal profit, sensitivity analyses have been performed considering one parameter at a time keeping other parameters at their original values
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