Inventory Control Model with Time-Linked Holding Cost, Salvage Value and Probabilistic Deterioration following Various Distributions

Pavan Kumar*,P S Keerthika

doi:10.35940/ijitee.b6441.129219

Abstract

This paper proposes a study on inventory model for time linked holding cost and salvage value with probabilistic deterioration following various distributions. Shortage is assumed to be partially backlogged. Demand rate is time linked. Deterioration is a continuous random variable following some probabilistic distributions. We consider the uniform and triangular distributions. An expression for average total cost is derived as an Economic Order Quantity problem. Using the probabilistic distribution, the average total cost function is divided into two models - Model I, and Model II. To explain the solution procedure, two numerical examples are provided for both models. The convex property for the concerned average total cost functions is justified with the help of graphs in three dimensions. The optimal results are compared graphically for both the models.

Highlights

In daily problems, we observe that the demand of some items always keeps on changing with respect to time
An expression for average total cost is derived as an economic order quantity problem
Thereafter, the average total cost function is transformed into two models - Model-I, and Model-II

Summary

INTRODUCTION

We observe that the demand of some items always keeps on changing with respect to time. Pavan, and Dutta, D (2015a) described a m linear fractional model for inventory of multiple products They considered multiple objectives with price sensitive demand function in fuzzy uncertainty type environment, introducing trapezoidal fuzzy numbers. At the same time, Dutta and Kumar (2015b, 2015c) proposed an inventory control problem They considered the shortage that was partial type backlog, and the items were perishable. The demand function was treated sensitive with time parameter Later, they presented some applications for fuzzy and goal type programming method to solve the multiple type objectives with linear and fractional inventory problem. Inventory Control Model with Time-Linked Holding Cost, Salvage ValueAnd Probabilistic Deterioration following Various Distributions and Keerthika (2018) described a stock level problem by considering the holding cost depending on parameter time.

NOTATIONS

MODEL DEVELOPMENT

SOLVED EXAMPLES

COMPARATIVE STUDY AND OBSERVATIONS

LIMITATIONS

CONCLUSIONS