Logarithmic inventory model with shortage for deteriorating items

Abstract

In this paper, we have modeled a business which starts with shortage of deteriorating items. After a duration, managers have freedom to order the stock of assurance of committed customers. There are many products that follow logarithmic demand pattern, so in this paper we incorporate it with the shortage of items at the beginning. A new model is developed to obtain the optimal solution for such type of market situation and have obtained some valuable results. Numerical examples and simulation study is appended along with managerial insights.

Keywords

• inventory
• cycle time
• optimality
• deterioration
• shortage
• logarithmic demand