A Study of an Inflationary Inventory Model with Stock-Dependent Demand and Shortages

 International Journal of Mathematical Trends and Technology (IJMTT) © 2014 by IJMTT Journal Volume-10 Number-2 Year of Publication : 2014 Authors : Jayjayanti Ray 10.14445/22315373/IJMTT-V10P513

Jayjayanti Ray. "A Study of an Inflationary Inventory Model with Stock-Dependent Demand and Shortages", International Journal of Mathematical Trends and Technology (IJMTT). V10:76-84 June 2014. ISSN:2231-5373. www.ijmttjournal.org. Published by Seventh Sense Research Group.

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.

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Keywords
Inventory, Shortages in all cycles, Deterioration, Stock-dependent demand, Inflation, Time-discounting