An inventory model for deteriorating items with expiry date and time varying holding cost. (2018)

• Record Type: Journal Article
• Authors: Sharma, Seema; Singh, Sanjay; Singh, S.R.
• Is Part Of: International journal of procurement management. Volume 11:Number 5(2018)
• Page Start: 650
• Page End: 666
• Publication Date: 2018
• Subjects: deterioration -- expiry items -- holding cost -- partial backlogging; Industrial procurement -- Management -- Periodicals; Industrial procurement -- Electronic information resources -- Periodicals; Business logistics -- Periodicals; 658.7205
• Languages: English
• ISSNs: 1753-8432

Abstract

In this paper, an economic order quantity model for items which deteriorate and expire with time has been developed. The holding cost has been assumed to be a linear function of time, whereas demand has been considered as a function of expiry date and selling price. Shortages are allowed and partially backlogged. The model so developed has been discussed for two cases of partial backlogging: 1) backlogging rate is taken to be constant; 2) backlogging rate depends upon waiting time. A numerical example given here illustrates each case. Finally, sensitivity analysis is carried out to analyse the behaviour of the model.