Title: Economic ordering policy for deteriorating items with inflation induced time dependent demand under infinite time horizon
Authors: K.V. Geetha; R. Udayakumar
Addresses: Department of Mathematics, PSNA College of Engineering and Technology, Dindigul – 624622, Tamilnadu, India ' Department of Mathematics, R&D Centre, Bharathiar University, Coimbatore 624 046, Tamilnadu, India; Department of Mathematics, PSNA College of Engineering and Technology, Dindigul – 624622, Tamilnadu, India
Abstract: This article deals with an economic order quantity (EOQ) model for deteriorating items in which the demand is considered to be inflation induced time dependent under infinite planning horizon. Here, we have considered two different models, that is, shortages are not permitted in model-1 and shortages are permitted with partial backlogging in model-2. The salvage value associated with the deteriorated units is also considered. The objective of this work is to minimise the total inventory cost and to find the optimal length of replenishment and the optimal order quantity. Numerical examples given illustrate the solution procedure. Comparative study between the two developed models is carried out. The insights obtained from managerial point of view are discussed in detail with the aid of sensitivity analysis with respect to major parameters of the inventory system.
Keywords: inventory; deterioration; inflation; salvage value; shortage.
International Journal of Operational Research, 2020 Vol.39 No.1, pp.69 - 94
Received: 21 Feb 2017
Accepted: 04 Dec 2017
Published online: 28 Apr 2020 *