An application of preservation technology in inventory control system with price dependent demand and partial backlogging

Abstract

Preservation of a product is an important issue in the inventory control system. It prevents the deterioration effect of the products while these are stored in the warehouse/showroom. Considering deterioration effect of the product and preservation technology, an inventory model of non-instantaneous deteriorating items is developed with the demand dependent on the selling price of the product. Two different preservation rates are considered. Shortages are allowed partially with two different backlogging rates. Due to consideration of three-parameter Weibull distributed deterioration and preservation facility, the corresponding optimization problems are highly nonlinear. So, these problems cannot be solved analytically due to nonlinearity. To overcome this situation, different variants of quantum-behaved particle swarm optimization (QPSO) are used. To illustrate and validate the proposed model, a numerical example is considered and solved for each case, and compared the results with the different variants of QPSO algorithms. Finally, a sensitivity analysis is performed to study the effect of changes of different parameters of the model on the optimal policy.