Optimal Cycle Time and Preservation Technology Investment for Deteriorating Items with Price-sensitive Stock-dependent Demand Under Inflation

2014 International Conference on Science & Engineering in Mathematics, Chemistry and Physics

数学;化学;物理学

Shah, Nita H.^1 ; Shah, Arpan D.^1

Department of Mathematics, Gujarat University, Gujarat, Ahmedabad, India^1

关键词: Critical factors;    Deteriorating items;    Economic order quantity;    Imperfect quality;    Optimal cycle time;    Preservation technologies;    Production process;    Stock-dependent demand;   

Others  :  https://iopscience.iop.org/article/10.1088/1742-6596/495/1/012017/pdf
DOI  :  10.1088/1742-6596/495/1/012017

来源: IOP

【 摘 要 】

The article analyzes economic order quantity for the retailer who has to handle imperfect quality of the product and the units are subject to deteriorate at a constant rate. To control deterioration of the units in inventory, the retailer has to deploy advanced preservation technology. Another challenge for the retailer is to have perfect quality product. This requires mandatory inspection during the production process. This model is developed with the condition of random fraction of defective items. It is assumed that after inspection, the screened defective items are sold at a discounted rate instantly. Demand is considered to be price-sensitive stock-dependent. The model is incorporating effect of inflation which is critical factor globally. The objective is to maximize profit of the retailer with respect to preservation technology investment, order quantity and cycle time. The numerical example is given to validate the proposed model. Sensitivity analysis is carried out to work out managerial issues.