Materials under Inflation: An Optimal Supply Policy Model

Abstract

The continuous analysis model is extended in this paper to allow cost and demand values to be computed by a time-lapse log concave function that meets network criteria for materials. Failure costs, insufficient maintenance costs, and replenishment costs are all deemed lower than capital costs, depending on the size of the lot for materials. Damage occurs at a degree that is independent of time. A backlog phase is allowed in the model. The backlog is being reduced at a steady pace. In this scenario, results that confirm the existence of an optimal policy and a testing algorithm are demonstrated. The survey system's overall cost is also demonstrated to be proportional to the number of refills. As a result, the ideal number of refills is determined using a solution method. The result is verified with the help of a numerical example.