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Optimal replenishment and ordering policy for time dependent demand and deterioration with discounted cash flow analysis
by Anand Chauhan; Anubhav Pratap Singh
International Journal of Mathematics in Operational Research (IJMOR), Vol. 6, No. 4, 2014


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.

Online publication date: Fri, 04-Jul-2014


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