An EOQ model for deteriorating items with different types of time-varying demand in healthcare industries

Abstract

Demand is the major factor of pharmaceutical inventory in Healthcare industries. The pharmaceutical inventory system in which the demand size is known is referred as a deterministic system. The pharmaceutical demand size may be fixed (static) or can vary (dynamic) from time to time. The dynamic inventory model for deteriorating items with different types of time-varying demand for Healthcare Industries is considered. The demand of the pharmaceutical inventory is dealing with three cases: (i) exponential time-varying demand (ii) stock-dependent demand and (iii) linear demand. The holding cost and deterioration rate of the pharmaceutical items are considered as a constant. The purpose of this study is to investigate the optimal replenishment time, economic order quantity and total cost of three different types of the proposed model. The main focus of this work is to get the minimum total cost of three kinds of variable demand and researching which one write gives the minimum (optimal) total cost for Healthcare Industries. Finally, the numerical examples are provided for three different types of demand to illustrate the solution procedure, and a sensitivity analysis of the optimal solution to three cases with respect to major parameters is carried out.