Authors: Ruchira Chakrabarty; Tapan Roy; Kripasindhu Chaudhuri
Addresses: Department of Mathematics, Vidyasagar College for Women, 39, Sankar Ghosh Lane, Kolkata-700006, India ' Department of Mathematics, Vidyasagar College for Women, 39, Sankar Ghosh Lane, Kolkata-700006, India ' Department of Mathematics, Jadavpur University, Kolkata-700032, India
Abstract: We developed this inventory model under price dependent demand in stochastic environment. Here probabilistic lead time is considered and shortages are allowed (if occur) over a finite time horizon. Generalising the work of Maiti et al. (2009) more precisely, we consider this model with just-in-time set up cost where deterioration is taken into account and backlogging rate has been considered as a negative exponential function of the waiting time. Taking all these into account, mathematical expression for expected average profit is derived. A closed form of analytic solution for maximising the expected average profit function is obtained when demand is constant. Numerical examples are carried out to identify the most sensitive parameter.
Keywords: inventory; stochastic lead time; JIT set up cost; deterioration; partial backlogging; price dependent demand.
International Journal of Operational Research, 2018 Vol.33 No.2, pp.161 - 178
Available online: 25 Sep 2018 *Full-text access for editors Access for subscribers Purchase this article Comment on this article