A note on an economic order quantity model with time-dependent demand, three-parameter Weibull distribution deterioration and permissible delay in payment

Abstract

Khanra et al. (2011, Applied Mathematics and Computation, 218, 1-9) established recently an Economic Order Quantity (EOQ) model with rate of deterioration and the rate of demand are constant and time dependent quadratic function of time respectively when the supplier offers the retailer a delay period. It is obvious that the significance of the depletion of any inventory is due to the rate of deterioration partly and the rate of demand mainly. In real life situation, the rate of deterioration is not always constant, but it is an increasing function of time. In our proposed model, we have considered a deteriorating item that follows a three-parameter Weibull distribution deterioration. Shortages are not permitted in our model. This model is validated by a numerical example and the sensitivity analysis of the optimal solution with respect to the parameters of the model is carried out.