Optimal inventory system for deteriorated goods with time-varying demand rate function and advertisement cost

Abstract

This research work presents a depleted demand inventory model with constant deterioration. The rate of change of demand is assumed to be a time-dependent function. Initial non-zero demand occurs due to advertisements. Advertisement cost is assumed to be constant. Two types of models are considered for two replenishment strategies viz., without shortages and with shortages. This study aims to obtain a suitable policy for replenishment for minimizing the total inventory cost. Four examples about the alterations made in the optimal solutions due to different values of independent parameters used in the models are considered and discussed. Sensitivity analysis is done and numerical illustrations are provided for validating the approach presented.

Keywords

• Inventory
• Ramp-rate type
• Replenishment
• Economic order quantity
• Deterioration
• Cycle length