Mitigation of High-Tech Products with Probabilistic Deterioration and Inflations

Abstract

This paper describes a deteriorating inventory model with ramp-type demand pattern under stock-dependent consumption rate. The deterioration of the product is considered as probabilistic to make the research a more realistic one. The proposed model assumes partially backorder rate which follows a negative exponential with the waiting time. The effect of inflation and time value of money are incorporated into the model. The purpose of this study is to develop an optimal replenishment policy so that the total profit is maximized. We provide a simple solution procedure to obtain the optimal solutions. Numerical examples along with graphical representations are provided to illustrate the model. Sensitivity analysis of the optimal solution with respect to key parameters of the model has been carried out and the implications are discussed.

Optimal replenishment policy with variable deterioration for fixed lifetime products

“…Sarkar et al [33] developed a continuousreview inventory model with backorder price-discount under controllable lead time. Recently, Sarkar et al [34] discussed a deteriorating inventory model for high-tech products with partial backlogging.…”

Preservation of deteriorating seasonal products with stock-dependent consumption rate and shortages

“…A similar type model with partial backlogging was considered by Skouri, Konstantaras, Papachristos, and Ganas [49]. Sarkar, Sett, Goswami, and Sarkar [45] considered a deteriorating inventory model with ramptype demand and partial backlogging.…”