ANALYSIS OF INVENTORY MODEL WITH PRICE DEPENDENT DEMAND INCLUDING CONSTANT DETERIORATION RATE WITH SALVAGE VALUE, HOLDING COST IS TIME-DEPENDENT AND SHORTAGE IS PARTIALLY BACKLOGGED

Abstract

In this study, we examine a model of inventory for things that are deteriorating along with the price dependent demand. The deterioration rate is constant and Salvage value is related to goods that are deteriorating, and holding cost is time-dependent. The suggested approach allows for some backlog in the shortage. Based on the length of time it will be before the next replenishment, the backlog rate is determined. This framework is solved to reduce the overall cost of given inventory to showing some numerical examples with sensitivity analysis to find the optimal solution for various parameters.

Keywords

• deterioration items
• price dependent demand
• holding cost
• partially backlogging
• salvage value