Title: Economic order quantity model for deteriorating items with time-dependent demand rate under time varying shortages
Authors: R.P. Tripathi; Amit Kumar Uniyal
Addresses: Department of Mathematics, Graphic Era University, Dehradun, (UK), India ' Institute of Management Studies, Dehradun, (UK), India
Abstract: This paper derives an economic order quantity model for deteriorating items with linearly time-dependent demand rate and shortages, where demand rate is differentiable function of time. Under these assumptions, mathematical formulations are derived for finding optimal time to finish positive inventory, cycle time, initial inventory and total cost per cycle. We show that the total cost per unit time is a concave function of cycle time. The results are illustrated with numerical example. Finally, sensitivity analyses have been performed to study the effects of changes with different parameters like: ordering cost, holding cost, purchase cost, deterioration rate, shortage cost and demand on optimal policies.
Keywords: lot sizing; order levels; linear time-dependent demand; deterioration rate; economic order quantity; EOQ models; deteriorating items; time varying shortages; ordering costs; holding costs; purchase costs; shortage costs.
International Journal of Mathematics in Operational Research, 2015 Vol.7 No.6, pp.706 - 719
Available online: 08 Oct 2015 *Full-text access for editors Access for subscribers Purchase this article Comment on this article