An inventory model of instantaneous deteriorating items with controllable deterioration rate for time dependent demand and holding cost
Abstract: The purpose of this
paper to develop an inventory model for instantaneous deteriorating items with
the consideration of the facts that the deterioration rate can be controlled by
using the preservation technology (PT) and the holding cost & demand rate
both are linear function of time which was treated as constant in most of the
deteriorating inventory model.
Design/methodology/approach: Developed the mathematical equation of
deterministic deteriorating inventory model in which demand rate and holding
cost both is linear function of time, deterioration rate is constant,
backlogging rate is variable and depend on the length of the next
replenishment, shortages are allowed and partially backlogged and obtain an
analytical solution which optimizes the total cost of the proposed inventory
model.
Findings: The model can be applied for optimizing the total inventory
cost of deteriorating items inventory for such business enterprises where they
use the preservation technology to control the deterioration rate under other
assumptions of the model.
Originality/value: The inventory system for deteriorating items has been
an object of study for a long time, but little is known about the effect of
investing in reducing the rate of product deterioration and their significant
impact in the business. The proposed model is effective as well as efficient
for the business organization that uses the preservation technology to reduce
the deterioration rate of the instantaneous deteriorating items of the
inventory.
Keywords: Inventory,
deteriorating items, shortages, controllable deterioration rate, partial
backlogging, preservation technology, time dependent holding cost
Author: Vinod Kumar Mishra
Journal Code: jptindustrigg130022
