Inventory model for deteriorating items with time and reliability dependent demand and partial backorder. (2017)

• Record Type: Journal Article
• Authors: Mahapatra, G.S.; Adak, Sudip; Mandal, T.K.; Pal, Shilpi
• Is Part Of: International journal of operational research. Volume 29:Number 3(2017)
• Page Start: 344
• Page End: 359
• Publication Date: 2017
• Subjects: inventory -- deterioration -- shortage -- backorder -- reliability; Operations research -- Periodicals; 003.05
• Languages: English
• ISSNs: 1745-7645

Abstract

The objective of this paper is to show how providing high-quality reliable products and balancing of the stock availability to maintain customer satisfaction can be the key factor in governing the inventory management of a company which in turn can increase its market share, productivity, and profitability. So, an economic order quantity (EOQ) model is developed to analyse the effect of reliability and time-based demand rate on inventory management system. The effect of constant deterioration and shortages are permitted with partial backlogging. The core objective of a good inventory management system is to provide the best possible customer service within the restraint of the lowest practical inventory costs. Thus, a minimisation of the total inventory cost has been tried to achieve with optimisation of inventory. To support our study, we have illustrated it with a numerical example and finally, sensitivity analysis is carried out to find the effect of the parameters on the optimal solution.