Title: Optimal replenishment and ordering policy for time dependent demand and deterioration with discounted cash flow analysis
Authors: Anand Chauhan; Anubhav Pratap Singh
Department of Mathematics, Graphic Era University, 566, Bell Road, Clementown, Dehardun, 248001, U.K., India
Department of Mathematics, S.G.R.R.P.G. College, Pathri Bagh, Dehardun, 248001, U.K., India
Abstract: We developed a model to reflect the real situation of market for time varying deterioration items and varying demand with time, discounted cash flow (DCF) approach to investigate optimal replenishments and ordering policy corresponding to cycle length during the time horizon H, consisting of positive and negative inventories periods for both with and without shortage to get a more generalise results. In addition, we prove that the total variable cost functions are convex by use of mathematical software. Numerical examples are to demonstrate the applicability of the proposed models and sensitivity analysis with respect to the parameters of the system carried out.
Keywords: inventory control; time varying demand; time varying deterioration; DCF analysis; inflation; optimisation; optimal replenishment policy; optimal ordering policy; deterioration; discounted cash flow.
Int. J. of Mathematics in Operational Research, 2014 Vol.6, No.4, pp.407 - 436
Available online: 04 Jul 2014