Title: Non-instantaneous deterioration inventory model with price and stock dependent demand for fully backlogged shortages under inflation
Authors: Ali Akbar Shaikh; Abu Hashan Md Mashud; Md. Sharif Uddin; Md. Al-Amin Khan
Addresses: School of Engineering and Sciences, Tecnológico de Monterrey, E. Garza Sada 2501 Sur, C.P. 64849, Monterrey, Nuevo León, México ' Depertment of Mathematics, Hajee Mohammad Danesh Science and Technology University, Dinajpur-5200, Bangladesh ' Depertment of Mathematics, Jahangirnagar University, Savar, Dhaka-1342, Bangladesh ' Depertment of Mathematics, Jahangirnagar University, Savar, Dhaka-1342, Bangladesh
Abstract: In this paper we have developed an inventory model according to consideration of price, stock dependent, fully backlogged shortage and inflation. In this model we have described the demand function is dependent on price and stock and in shortage time the demand is depend only price of the product. Price of the product is dependent on different markup rate. The deterioration is considered as a non-instantaneous, i.e., when the item stock in retailer's house after some time deterioration will start. Shortages, if any are allowed and it is fully backlogged. The corresponding inventory problem constitutes a constraint optimisation problem. Here we have solved this problem by using Lingo 10 software. Finally, to illustrate and validate the inventory model, we have used a numerical example considered different markup rate. A sensitivity analysis has been carried out to study the effect of changes of different inventory parameters changing one parameter at a time and the others value of parameters is same.
Keywords: fully backlogged shortages; inflation; inventory; non-instantaneous deterioration; stock dependent demand.
International Journal of Business Forecasting and Marketing Intelligence, 2017 Vol.3 No.2, pp.152 - 164
Received: 19 Sep 2016
Accepted: 21 Jan 2017
Published online: 08 May 2017 *