Title: Inventory model for deteriorating items with time and reliability dependent demand and partial backorder
Authors: G.S. Mahapatra; Sudip Adak; T.K. Mandal; Shilpi Pal
Addresses: Department of Mathematics, National Institute of Technology Puducherry, Karaikal-609605, India ' Harit High School (H.S.), Singur, Hooghly-712305, India ' Indian Institute of Engineering Science and Technology, Shibpur, West Bengal-711103, India ' Indian Institute of Engineering Science and Technology, Shibpur, West Bengal-711103, India
Abstract: The objective of this paper is to show how providing high-quality reliable products and balancing of the stock availability to maintain customer satisfaction can be the key factor in governing the inventory management of a company which in turn can increase its market share, productivity, and profitability. So, an economic order quantity (EOQ) model is developed to analyse the effect of reliability and time-based demand rate on inventory management system. The effect of constant deterioration and shortages are permitted with partial backlogging. The core objective of a good inventory management system is to provide the best possible customer service within the restraint of the lowest practical inventory costs. Thus, a minimisation of the total inventory cost has been tried to achieve with optimisation of inventory. To support our study, we have illustrated it with a numerical example and finally, sensitivity analysis is carried out to find the effect of the parameters on the optimal solution.
Keywords: inventory; deterioration; shortage; backorder; reliability.
International Journal of Operational Research, 2017 Vol.29 No.3, pp.344 - 359
Received: 28 Apr 2014
Accepted: 19 Oct 2014
Published online: 06 Jun 2017 *