Optimization of Inventory Models for Deteriorating Items with Stock Dependent Demand

Abstract

Inventory is very important part of company s operation. It is controlled, so that it does not exceed the requirements and at the same time there are no stock-outs. Excess inventory is a source of worry to the management as it blocks the company s money. It is well known that the stock level has motivational effect on the customers in a market, that is, the demand rate may go up or down if the on hand inventory level increases or decreases. There are products which are available or useful for specific time period so demand can also assume to depend on time factor also and price is always an important and critical factor of demand. Such a situation generally arises for a consumer item type of inventory. Therefore, it is essential to develop and study inventory models for decaying items with stock dependent, time dependent and price dependent demand rate. The objective of the proposed study is to develop some mathematical models in order to minimize the annual total cost of inventory. newlineResearcher dealt with an inventory model for deteriorating items with stock dependent demand, learning effect and inflation. The origin of this model is the problem of a medicine stockiest for whom the above mathematical properties were working as his business constraints. We generated numerical example, to validate our model and to get the solution of stockiest problem. Sensitive analysis also has been done to observe the changing behavior of different parameters. newlineWe constructed an inventory model in which the ordering policy for the retailer is a function of available stock level, selling price and deterioration rate. The occurring shortages are partially backlogged and two different cases of backlogging are discussed in this model. The ordering cost is also considered as a function of time. This model is developed, keeping in mind the problem of a retail seasonal business house like ice cream parlor. To validate our model numerical examples for the two cases are cited. To study the effect of changes with the variation in