Title: Inventory model with multivariate demands in different phases with customer returns and inflation

Authors: S.R. Singh; Seema Sharma; Sanjay Singh

Addresses: Department of Mathematics, D.N. (P.G.) College, Meerut, Uttar Pradesh – 250001, India ' Department of Mathematics, Gurukul Kangri University, Hardwar, Uttarakhand – 249404, India ' Department of Mathematics, Gurukul Kangri University, Hardwar, Uttarakhand – 249404, India

Abstract: This paper presents an EOQ model of deteriorating item with the demand depending on three significant factors like inventory level, time and price. Shortages are allowed and partially backordered with a time dependent rate. The concept of customer returns as a function of price and demand has been included. A profit function is formulated and maximised for the considered system. A numerical example has been given to illustrate the model and sensitivity analysis is performed in order to examine the impact of various parameters on the optimal policy.

Keywords: customer returns; partial backlogging; inflation; deterioration; inventory modelling; inventory management; multivariate demand; EOQ model; economic order quantity; deteriorating items; inventory level; time dependent demand; price dependent demand.

DOI: 10.1504/IJMOR.2016.076788

International Journal of Mathematics in Operational Research, 2016 Vol.8 No.4, pp.477 - 489

Received: 24 Jul 2014
Accepted: 01 Oct 2014
Published online: 01 Jun 2016 *

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