A Study of an Inflationary Inventory Model with Stock-Dependent Demand and Shortages
Journal Title: INTERNATIONAL JOURNAL OF MATHEMATICS TRENDS AND TECHNOLOGY - Year 2014, Vol 10, Issue 2
Abstract
An inventory replenishment problem for a deteriorating item is considered over a finite time-horizon with shortages in all cycles and stock-dependent demand rate. The effects of inflation and time-value of money are also taken into account. The advantage of allowing shortages in all cycles is illustrated with an example. A sensitivity analysis of the optimal solution with respect to the parameters of the system is carried out. The results for a non-deteriorating item are also derived as a limiting case of the general model.
Authors and Affiliations
Jayjayanti Ray
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