Inventory Control Problems with Exponential and Quadratic Demand considering Weibull Deterioration

Abstract

Supplies are goods stored for use or sale in the future. In reality, it is often found that stored goods can experience deterioration (in terms of value/quality), that is to say goods are damaged, and have a limited service life (becoming expired), such as those found in food products, medicines, chemicals, and others. These factors are important ones that the seller needs to be aware of so as to ensure that the goods he stores are in good condition. Another aspect that cannot be ignored in the management of goods inventory is the demand from consumers, which is dynamic in nature. In this paper, a mathematical model will be developed considering Weibull deterioration for exponential demand and quadratic demand with shortages of time-dependent goods. Based on the results and sensitivity analysis conducted, it was found that the total cost of inventory will increase in accordance with the level of demand and the level of deterioration of goods.