The effect of inspection on deterioration rate: An inventory model for deteriorating items with advanced payment

Abstract

In many inventory deterioration problems of real world, deterioration rate of some items may be affected by other adjacent items. Accordingly, the effect of deteriorated items on other items could be declined by removing them through inspection. In this sense, an inventory model for deteriorating items is introduced in this paper, considering the effect of inspection times during the replenishment period on average deterioration rate. Also, supplier is considered to impose some prepayments to the retailer. In the proposed model, the average deterioration rate is related to the number of inspections at each period. Likewise, to illustrate the uniqueness of the solution, the convexity of the model is proved. Moreover, the proposed model is validated by discussing and analyzing a case study in Iran through which noticeable results are achieved. The findings indicate that compared to previous models, the proposed model is superior in cost management.