DEVELOPMENT OF SOME DETERMINISTIC MODELS OF PERISHABLE INVENTORY WITH VARIABLE HOLDING COST

Abstract

Inventory management is very crucial in any business success. These models become more important for the products in our daily. Pick out the correct model for the successful business is very important because a model can destroy the whole product outcome. Most of the models in the literature for optimizing cost in such an environment consider only a linear demand and consider only one or two factors which effect final product. Many inventory models designed as of now do not consider inflation as a factor of the model. This view occurred due to the thought that inflation would not impact the inventory policy to any significant level. This view is not applicable in real life since the resources of an enterprise are highly related to the revenue. It must be considered for investments of long term and predictions. Since few decades, large scale inflation is the reason behind the changes in various world economies to such level and affected their money purchasing power in a clearly declining manner, which is why ignoring the effects of inflation and value of money in terms of time is not possible. In recent years, inflation came into fashion as an important aspect for any system of business. A lot of work, without considering the importance of inflation has been done by authors to control the inventory of deteriorating items. newlineNext, considered an imperfect production with variable holding cost under two storage capacities. Shortages are allowed and partially backlogged. As we can see this research embodies a significant inductive reasoning of existing inventory models, we can also conduct investigation for various numbers of areas. Other extending models with continuously multi-variant retaining costs to the discretely variable case are inclusive potential topics for future research. Integrating a random demand rate would be notable, because the actual level of retaining cost certainly achieved. To determine which products reflect multi-variant retaining costs and to see exactly how the retaining costs changes over tim