A finite time-horizon deterministic EOQ model with stock-dependent demand, effects of inflation and time value of money with shortages in all cycles

Authors

  • T. Roy Department of Mathematics, Vidyasagar College for Women Kolkata, India
  • K.S. Chaudhuri Department of Mathematics, Jadavpur University Kolkata, India

DOI:

https://doi.org/10.2298/YJOR0702195R

Keywords:

inventory, stock-dependent demand, shortage, inflation, time value of money

Abstract

A finite time-horizon deterministic inventory model is developed, taking the demand rate at any instant to be a function of the on-hand inventory (stock-level) at that instant. Shortages in inventory are allowed. The effects of inflation and time value of money are considered. Two separate inflation rates: namely, the internal (company) and the external (general economy) are introduced. A numerical example of the model is discussed. A sensitivity analysis of the optimal solution with respect to the parameters of the model is examined.

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Published

2007-09-01

Issue

Vol. 17 No. 2 (2007)

Section

Research Articles

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