A Study of Inventory System with Ramp Type Demand Rate and Shortage in The Light Of Inflation – I

Sangeeta Gupta; R.K. Srivastava; A.K. Singh

doi:https://doi.org/10.14445/22315373/IJMTT-V17P513

International Journal of Mathematics Trends and Technology

Research Article | Open Access | Download PDF

Volume 17 | Number 2 | Year 2015 | Article Id. IJMTT-V17P513 | DOI : https://doi.org/10.14445/22315373/IJMTT-V17P513

A Study of Inventory System with Ramp Type Demand Rate and Shortage in The Light Of Inflation – I

Sangeeta Gupta, R.K. Srivastava, A.K. Singh

Abstract

In this paper, we develop an order-level inventory system for deteriorating items under inflation with ramp type demand function and partial exponential type-backlogging function of time. Three costs are considered under inflation as significant: deterioration, holding, shortage. The backlogging rate is an exponentially decreasing, time-dependent function specified by a parameter. For this model we derive results, which ensure the existence of a unique optimal policy and provide the solution procedure for the problem. The method is illustrated by numerical example, and sensitivity analysis of the optimal solution with respect to the parameters of the system is carried out.

Keywords

Inventory, Deteriorating items, Inflation, Ramp type demand

References

[1] Aggarwal, S.C. (1981), “Purchase inventory decision models for inflationary conditions”. Interfaces 11, 18-23.
[2] Buzacott, J.A. (1975), “Economic order quantities with inflation”. Operational Research Quarterly 26(3) (i), 553-558.
[3] Chandra, J.M. and Bahner, M.L. (1985), “The effects of inflation and the time value of money on same inventory systems”. International Journal of Production Research 23(4), 723-730.
[4] Mandal, B. and Pal, A.K. (1998), “Order level inventory system with ramp type demand rate for deteriorating items”. Journal of Interdisciplinary Mathematics, 1; 49-66.
[5] Misra, R.B. (1975), “A study of inflationary effects on inventory systems”. Logistics Spectrum 9(3), 260-268.
[6] Misra, R.B. (1979), “A note on optimal inventory management under inflation”. Naval Research Logistics Quarterly 26, 161-165.
[7] Papachristos, S. and Skouri, K. (2000), “An optimal replenishment policy for deteriorating items with time-varying demand and partial exponential type backlogging”. Operation Research Letter 27, 175-184.
[8] Teng, J.T., Chang, H.J., Dye, C.Y. and Hung, C.H. (2002), “An optimal replenishment policy for deteriorating items with time varying demand and partial backlogging”. Operation Research Letter 30, 387-393.
[9] Wu, K.S. and Ouyang, L.Y. (2000), “A replenishment policy for deteriorating items with ramp type demand rate”. Proc. Natl. Sci. Counc. ROC (A), Vol 24(4), 279-286.

Citation :

Sangeeta Gupta, R.K. Srivastava, A.K. Singh, "A Study of Inventory System with Ramp Type Demand Rate and Shortage in The Light Of Inflation – I," International Journal of Mathematics Trends and Technology (IJMTT), vol. 17, no. 2, pp. 96-104, 2015. Crossref, https://doi.org/10.14445/22315373/IJMTT-V17P513