Title: A lot size inventory model for the Weibull distributed deterioration rate with discounted selling price and stock-dependent demand

Authors: Nita H. Shah, Bhavin J. Shah, H.M. Wee

Addresses: Department of Mathematics, Gujarat University, Ahmedabad – 380 009, Gujarat, India. ' Department of Mathematics, B.K. Majumdar Institute of Business Administration, HL Campus, Ahmedabad – 380 009, Gujarat, India. ' Department of Industrial Engineering, Chung Yuan Christian University, Chungli – 32023, Taiwan, ROC; Graduate School of Business, Curtin University of Technology, Perth, WA 6845, Australia

Abstract: In this paper, we present an inventory model with stock-dependent demand and deteriorating inventory. It is assumed that the deterioration rate follows a three-parameter Weibull distribution. The strategy of offering discounts in the selling price to boost demand is studied. The optimal discount in the selling price to maximise profit and the effects of deterioration on the optimal solution are the foci of this study. A numerical example and sensitivity analysis are carried out to validate the theory.

Keywords: time-dependent deterioration; discounted selling price; stock-dependent demand; lot sizing; inventory models Weibull distributed deterioration rate; discounts.

DOI: 10.1504/IJDATS.2009.027512

International Journal of Data Analysis Techniques and Strategies, 2009 Vol.1 No.4, pp.355 - 363

Published online: 28 Jul 2009 *

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