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December 28, 2023
Published
July 17, 2023
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Abstract

Purpose of the study: The proposed model shows a deterministic approach of the inventory management in which the rate of the deterioration of the inventory commodities is proportional to time, demand rate is a function of selling price and inventory holding cost both, ordering cost and deterioration rate are all function of time. Here shortages are allowed during the lead time and completely backlogged. The optimum replenishment policy is to be determined which minimizes the total cost. The rate of deterioration has been considered as non-instantaneous and that follows the two parameters Weibull distribution. In the proposed model we aim to find optimal value of the inventory level to minimize the total effective cost.


Methodology: The optimal solution will have to be obtained by using Mathematica Software and has been illustrated using a numerical example.


Main Findings: Since lowering the selling price would result in increase in purchase of items by the customers, hence the selling price is the major criteria to determine their buying capacity.


Applications of this study: If researchers go on taking several kinds of variable costs etc., then hopefully they may find a new area of study in their research.

Keywords

Deteriorating Items Price Dependent Demand Rate Time Dependent Holding Cost Non-instantaneous Deteriorating Rate Optimum Replenishment Policy

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How to Cite
Singh, D. K. (2023). A deterministic inventory model for deteriorating products with shortages and price dependent demand rate. International Journal of Students’ Research in Technology & Management, 11(3), 01–05. https://doi.org/10.18510/ijsrtm.2023.1131
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