Inventory model with inventory-dependent demand for deteriorating items in a single warehouse system

Abstract

Article history: Received December 10, 2013 Received in revised format 25 June 2014 Accepted July 29 2014 Available online August 1 2014 This paper derives a deterministic inventory model for deteriorating items with inventory dependent demand rate. This study develops an order level inventory model with single warehouse where shortages are allowed and it is completely backlogged. The planning horizon is finite. This paper shows that there exists a unique optimal cycle time to minimize the total inventory cost per cycle. Truncated Taylor’s series expansion is used for finding closed form optimal cycle time, optimal time to finish positive inventory and optimal total inventory cost per cycle. The numerical example is given to validate the proposed model. The sensitivity analysis of the solution with the changes of the values of parameters associated with the model has also been discussed. © 2014 Growing Science Ltd. All rights reserved.