A Weibull distributed deteriorating inventory model with all-unit discount, advance payment and variable demand via different variants of PSO. Issue 2 (27th October 2021)

• Record Type: Journal Article
• Authors: Duary, Avijit; Banerjee, Tanmoy; Shaikh, Ali Akbar; Niaki, Seyed Taghi Akhavan; Bhunia, Asoke Kumar
• Is Part Of: International journal of logistics systems and management. Volume 40:Issue 2(2021)
• Page Start: 145
• Page End: 170
• Publication Date: 2021-10-27
• Subjects: inventory -- all-unit discount policy -- Weibull distribution -- variable demand -- partial backlogging -- particle swarm optimisation -- PSO -- advance payment; Business logistics -- Periodicals; 658.5005
• Languages: English
• ISSNs: 1742-7967

Abstract

The goal of this research is to formulate an inventory control problem of a single item with variable demand dependent on displayed stock level and selling price of the commodity. The item deteriorates based on a three-parameter Weibull distribution and advance payment is needed to purchase the item with the all-unit discount policy. Shortages are allowed partially and backlogged with the rate dependent on the length of customers' waiting time. The corresponding problem is formulated as a profit maximisation model. For solving this problem, four different variants of particle swarm optimisation (PSO) are utilised. Then, the application of the model is illustrated with the help of a numerical example. Finally, sensitivity analyses are carried out to study the impact of different parameters on optimal policies.