Optimal replenishment policy with variable deterioration for fixed lifetime products

Abstract

Abstract. Although numerous researchers have developed di erent inventory models for deteriorating items, very few of them have taken the maximum lifetime of a deteriorating item into consideration. This paper illustrates a mathematical model to obtain an optimal replenishment policy for deteriorating items with maximum lifetime, ramp-type demand, and shortages. Both holding cost and deterioration function are linear functions of time, which are treated as constants in most of the deteriorating inventory models. A simple solution procedure is provided 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.

Credit policy for an inventory model of a deteriorating item having variable demand considering default risk

“…(iii) Retailer also have to pay interest on the credit amount of the defaulters for the sold units during (0, M − N ] as well as (M − N, T ], those are respectively presented mathematically in Equation (18) and Equation (19).…”

“…In 1963, Ghare and Schrader [16] first developed an EOQ model on deteriorating items. Afterwards, in different circumstances, researchers developed their models for deteriorating items assuming constant deterioration rate [2,17], time dependent deterioration rate [8,18]. Recently, Pramanik et al [19] gives a new direction for modelling the inventory models of deteriorating items introducing the interest paid situation for the deteriorated units.…”

Optimal replenishment and credit policy in an inventory model for deteriorating items under two-levels of trade credit policy when demand depends on both time and credit period involving default risk

“…Recently, many researchers have adopted the deterioration rate as θ (t) = 1/(1 + m − t) with 0 ≤ t ≤ T ≤ m to incorporate the fact that the deterioration rate is 100% near to its expiration date such as Sarkar [37], Mahata [24], Wu et al [59], Sarkar et al [40], Sarkar [38], and Sett et al [42]. Hence, we use the newly adopted deterioration rate to run the numerical examples.…”