Title: An inventory model for deteriorating items with constant, linear and quadratic holding cost - a comparative study in third order equation

Authors: C. Krishnamoorthi; V. Choudri

Addresses: RVS College of Engineering and Technology, Coimbatore – 641 402, Tamilnadu, India ' RMD Engineering College, Chennai – 601 206, Tamilnadu, India

Abstract: In the classical inventory model the holding cost was assumed to be constant. However, in reality holding cost may not always be constant. The holding cost may be time dependent. In this paper, a production inventory model with deteriorating items with constant, linear and quadratic holding cost is considered and also a comparative study is carried out between constant holding cost and time dependent (linear and quadratic) holding costs. Three models are developed. In three models, the optimum time and total cost are derived when the holding cost is: 1) constant; 2) linear; 3) quadratic. A mathematical model is developed for each model and the optimal production lot size which minimises the total cost is derived. The optimal solution is derived and an illustrative example is provided. The validation of result in this model was coded in Microsoft Visual Basic 6.0.

Keywords: inventory; deteriorating; linear; quadratic; holding cost; demand and production.

DOI: 10.1504/IJOR.2018.089132

International Journal of Operational Research, 2018 Vol.31 No.2, pp.262 - 280

Received: 14 Nov 2014
Accepted: 11 Jan 2015
Published online: 08 Jan 2018 *

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