Effect of stock-dependent demand in EOQ models for deteriorative items under linear, quadratic and exponential holding cost

Abstract

Inventory models for deteriorative items with stock-dependent demand for deteriorative items in linear, quadratic and exponential time dependent holding cost are considered in this study. To wit, no study exists that uses effect of stock-dependent demand for deteriorative items in linear, quadratic and exponential time dependent holding cost. Four models are developed: the first model uses stock-dependent demand with constant holding cost; the second model uses stock-dependent demand in linear holding cost; the third model uses stock-dependent demand in quadratic holding cost; and the fourth model uses stock-dependent demand with exponential holding cost. Mathematical models are delineated for each model and relevant examples are provided to elucidate the proposed procedure. The objective herein is to obtain optimum order quantities and order intervals with respect to overall cost. Numerical examples are provided for all four cases to validate the proposed model. Sensitivity analysis is provided for each of the four models. The necessary data was generated using visual basic 6.0.