Authors: Sanjay Sharma; S.R. Singh; Mangey Ram
Addresses: Department of Mathematics, Graphic Era University, 566/6, Bell Road, Clement Town, Dehradun, U.K., India ' Department of Mathematics, D.N. (P.G.) College, Railway Road, Meerut, U.P., India ' Department of Mathematics, Graphic Era University, 566/6, Bell Road, Clement Town, Dehradun, U.K., India
Abstract: In the classical inventory models, the demand rate is regularly assumed to be either constant or time-dependent, but independent of the stock levels. Since the demand rate is not only influenced by stock level, but also is associated with the selling price. Therefore, we also take into account the selling price and then establish an EPQ model, in which the demand rate is a function of the selling price. In this paper, we consider the production rate as demand dependent, which is more realistic in our general life. The planning horizon is infinite. The time dependent rate of deterioration is taken into consideration and demand rate is price dependent. We consider that shortages are allowed and partially backlogged.
Keywords: deterioration rate; exponential demand; price sensitive demand; EPQ model; economic production quantity; deteriorating items; shortages; inventory modelling; inventory management; selling price; production rate; planning horizon; partial backlogging.
International Journal of Operational Research, 2015 Vol.23 No.2, pp.245 - 255
Available online: 29 Apr 2015 *Full-text access for editors Access for subscribers Purchase this article Comment on this article