An EOQ model for non-instantaneous deteriorating items with partial backlogging and permissible delay in payments under inflation. (2017)

• Record Type: Journal Article
• Authors: Palanivel, M.; Uthayakumar, R.
• Is Part Of: International journal of industrial and systems engineering. Volume 26:Number 1(2017)
• Page Start: 63
• Page End: 89
• Publication Date: 2017
• Subjects: non-instantaneous deterioration -- partial backlogging -- permissible delay -- payment delays -- inflation -- economic order quantity -- EOQ model -- deteriorating items -- selling prices -- advertisement costs -- inventory cost -- inventory management; Systems engineering -- Periodicals; Industrial engineering -- Periodicals; 620.001171
• Languages: English
• ISSNs: 1748-5037

Abstract

In this paper, an economic order quantity (EOQ) model for non-instantaneous deteriorating items with permissible delay in payments under the effect of inflation and time value of money is presented. The demand is considered as a deterministic function which includes selling price and advertisement cost. Also in this model, shortages are allowed and partially backlogged. The backlogging rate is dependent on the waiting time for the next replenishment. The objective of this model is to minimise the total inventory cost of the retailer by finding the optimal length of time in which there is no inventory shortage and finding the optimal order quantity. Numerical examples are given to justify the model. Sensitivity analysis of the model with respect to several system parameters has been carried out and the implications are discussed in detail.