An Economic Order Quantity Model for Weibull Deteriorating Items with Stock Dependent Consumption Rate and Shortages under Inflation  
  Authors : Bhaskar Bhaula; M.Rajendra Kumar

 

This paper derives an optimal inventory replenishment policy for two parameters weibull deterioration with stock-dependent consumption rate, shortages under inflation and time discounting over a finite planning horizon. In a competitive super market, by and large customers are influenced by the quantity of stock displayed on the shelves. Hence for customers’ inflow, this stock dependent demand factor is being included in our model paying more cost towards maintenance of high inventory. On the other hand shortage is a barrage for customers’ inflow thus we have included a completely backlogged factor to avoid customers’ dissatisfaction for long period. The convexity of the cost function has been proved analytically. The theoretical result reflected in this paper is also studied extensively through numerical example and sensitivity analysis.

 

Published In : IJCAT Journal Volume 1, Issue 5

Date of Publication : 30 June 2014

Pages : 196 - 204

Figures : --

Tables : 09

Publication Link : An Economic Order Quantity Model for Weibull Deteriorating Items with Stock Dependent Consumption Rate and Shortages under Inflation

 

 

 

Dr.Bhaskar Bhaula : M.Sc.(Mathematics)-1987,M.Phil.,- 2006,Ph.D-2011.Worked as Associate Professor in the Dept. of Maths ,SMIT from 1989-2012.Presently working as Associate Professor in the Dept.of Mathematics,NIST.Number of papers published (7) and presented in National/International conferences. Permanent member of the professional bodies Orissa Mathematical Society and ISTE.

Mr.M.Rajendra Kumar : M.Sc.(Mathematics)- 1992,M.Phil.,-1999.Woriking as Associate Professor in the Dept. of Mathematics NIST since -2005.Participated in number o National/International conferences.

 

 

 

 

 

 

 

Inventory

inflation

Weibull deterioration

stock-dependent consumption rate and shortages

An optimal inventory ordering policy has been developed considering stock-dependent consumption rate incorporating some realistic features such as two parameters Weibull deterioration, shortages fully backlogged, stock displayed on the shelves, inflation, time value of money and discounted cash flow approach. The quality and quantity of goods is declining in course of time due to deterioration, hence deliberation of Weibull distribution time varying deterioration function in place of constant deterioration taken in various models of this type carries a momentous meaning for perishable, volatile and failure of any kind of items. In a competitive super market, by and large customers are influenced by the quantity of stock displayed on the shelves. For customers’ inflow, this stock dependent demand factor is being included in our model paying more cost towards maintenance of high inventory level.

 

 

 

 

 

 

 

 

 

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