An EPQ model for delayed deteriorating items with reliability consideration and quadratic demand
by Sani Dari; Babangida Sani
International Journal of Mathematics in Operational Research (IJMOR), Vol. 17, No. 2, 2020

Abstract: In this paper, an EPQ model for delayed deteriorating items is developed where the demand before deterioration sets in is assumed to be different from that after deterioration sets in. There are three stages for the inventory system as follows: 1) the production build-up stage (0 ≤ t ≤ L₁); 2) stage before deterioration sets in (L₁ ≤ t ≤ L₂); 3) stage after deterioration sets in (L₃ ≤ t ≤ L). It is also assumed that the unit cost of production is directly proportional to the process reliability and inversely proportional to the rate of demand and shortages are not allowed. A numerical example is given to illustrate the developed model and sensitivity analysis carried out on the example to see the effect of parameter changes.

Online publication date: Mon, 21-Sep-2020

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