Economic order quantity model for deteriorating items with time-dependent demand rate under time varying shortages. (2015)

• Record Type: Journal Article
• Authors: Tripathi, R.P.; Uniyal, Amit Kumar
• Is Part Of: International journal of mathematics in operational research. Volume 7:Number 6(2015)
• Page Start: 706
• Page End: 719
• Publication Date: 2015
• Subjects: lot sizing -- order levels -- linear time-dependent demand -- deterioration rate -- economic order quantity -- EOQ models -- deteriorating items -- time varying shortages -- ordering costs -- holding costs -- purchase costs -- shortage costs; Operations research -- Mathematical models -- Periodicals; Operations research -- Mathematics -- Periodicals; Decision making -- Mathematical models -- Periodicals; 658.4033
• Languages: English
• ISSNs: 1757-5850

Abstract

This paper derives an economic order quantity model for deteriorating items with linearly time-dependent demand rate and shortages, where demand rate is differentiable function of time. Under these assumptions, mathematical formulations are derived for finding optimal time to finish positive inventory, cycle time, initial inventory and total cost per cycle. We show that the total cost per unit time is a concave function of cycle time. The results are illustrated with numerical example. Finally, sensitivity analyses have been performed to study the effects of changes with different parameters like: ordering cost, holding cost, purchase cost, deterioration rate, shortage cost and demand on optimal policies.