A lot size inventory model for the Weibull distributed deterioration rate with discounted selling price and stock-dependent demand. (29th July 2009)

• Record Type: Journal Article
• Authors: Shah, Nita H.; Shah, Bhavin J.; Wee, H.M.
• Is Part Of: International journal of data analysis techniques and strategies. Volume 1:Number 4(2009)
• Page Start: 355
• Page End: 363
• Publication Date: 2009-07-29
• Subjects: time-dependent deterioration -- discounted selling price -- stock-dependent demand -- lot sizing -- inventory models Weibull distributed deterioration rate -- discounts; Electronic data processing -- Periodicals; Database searching -- Periodicals; 005
• Languages: English
• ISSNs: 1755-8050

Abstract

In this paper, we present an inventory model with stock-dependent demand and deteriorating inventory. It is assumed that the deterioration rate follows a three-parameter Weibull distribution. The strategy of offering discounts in the selling price to boost demand is studied. The optimal discount in the selling price to maximise profit and the effects of deterioration on the optimal solution are the foci of this study. A numerical example and sensitivity analysis are carried out to validate the theory.