Title: An economic order quantity model for Pareto distribution deterioration with linear demand under linearly time-dependent shortages

Authors: S. Sindhuja; P. Arathi

Addresses: Department of Mathematics and Actuarial Science, B.S. Abdur Rahman Crescent Institute of Science and Technology, Vandalur, Chennai-600048, India ' Department of Mathematics and Actuarial Science, B.S. Abdur Rahman Crescent Institute of Science and Technology, Vandalur, Chennai-600048, India

Abstract: The inventory models for deteriorating items aim to reduce the total cost under normal market conditions. This paper focuses on the possible effects of minimising total cost by developing an economic order quantity (EOQ) model, where the deterioration is considered as Pareto distribution with linear demand. This model is applicable for vegetable vendors to make inventory decisions in the inventory system under the influence of optimal values. The linear demand and shortage of cost are also taken into consideration. To illustrate the proposed EOQ model, numerical examples and corresponding sensitivity analysis on the parameters A, c, d, p_c, h, s, α and β are discussed and compared with the existing models. The result of the model developed in this paper is based on the deterioration leading to significant effects of the Pareto distribution deterioration variables α and β on the 'total cost'. The complex algebraic equations are solved using MATLAB R2013a. [Submitted: 11 January 2021; Accepted: 12 April 2021]

Keywords: economic order quantity; EOQ; Pareto distribution; deterioration; linear demand; shortage.

DOI: 10.1504/EJIE.2022.123730

European Journal of Industrial Engineering, 2022 Vol.16 No.4, pp.418 - 441

Received: 11 Jan 2021
Accepted: 12 Apr 2021
Published online: 01 Jul 2022 *

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