Abstract
In the present paper, a total optimal cost of an inventory model with exponential declining demand and constant deterioration is considered. The time-varying holding cost is a linear function of time. Shortages are not allowed. The items (like food grains, fashion apparels and electronic equipments) have fixed shelf-life which decreases with time during the end of the season. A numerical example is presented to demonstrate the model and the sensitivity analysis of various parameters is carried out.
Highlights
The main objective of the proposed model is to develop an inventory model for a deteriorating item having a time-dependent exponential declining demand rate and time-varying holding cost
The first category refers to the items that become damaged, spoiled, decayed, loss of utility, evaporative or expired through time like food grain, food stuffs, fruits, flowers, vegetables, films, medicines and so on, while the other category refers to the items that loss their parts or their total values through time because of the introduction of new technology or the alternatives like fashion and seasonal goods, electronic equipments, computer chips and mobile phones and so on
This paper examines an inventory model with linearly varying holding cost
Summary
The main objective of the proposed model is to develop an inventory model for a deteriorating item having a time-dependent exponential declining demand rate and time-varying holding cost. Ghare and Schrader [9] concluded in their study that the consumption of the deteriorating items was closely relative to a negative exponential function of time They established the classical EOQ model with constant deterioration rate and without shortages. We have developed an EOQ inventory model for deteriorating items with exponentially declining demand when the deterioration rate follows a constant rate with time-dependent linear holding cost and shortages are not allowed. An effort has been made to analyze an EOQ model for deteriorating items by considering the time-dependent exponential declining demand rate and time-dependent linear inventory holding cost. The rest part of the paper is arranged as follows: In Section 1, we review the literature on the effects of deterioration and time-dependent demand rate and we position our model in relative to previous work.
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