Inventory and preservation investment for deteriorating system with stock-dependent demand and partial backlogged shortages
DOI:
https://doi.org/10.2298/YJOR200217038SKeywords:
stock-dependent demand, deterioration, preservation technology investment, shortages, backlogging, sensitivityAbstract
Our model deals with the stock-dependent demand as exhibiting huge volume of commodities leads to more costumers and augment the trading of the goods. As some goods like vegetables, fruits, medicines deteriorate after a period of time, resulting in economical and financial losses, we took this factor into consideration and included a constant deterioration rate, controlled by suitable preservation technologies. Preservation technology investments are made for the valuable business as it helps to decrease the rate of deterioration. Our model allows shortages, and back-ordering is permissible to manage the loss that occurs due to perishable objects and shortages. The objectives are to find the optimal cycle time, preservation technology cost, and positive inventory time. The paper also proves the convexity of total cost through graphs with respect to decision variables. A sensitivity analysis of decision variables with respect to different inventory parameters is carried out.References
Bardhan, S., Pal, H., and Giri, B.C. "Optimal replenishment policy and preservation technology investment for a non-instantaneous deteriorating item with stock-dependent demand" Operational Research 19 (2) (2019): 347–368.
Cárdenas-Barrón, L.E., Shaikh, A.A., Tiwari, S., and Treviño-Garza, G. "An EOQ inventory model with nonlinear stock dependent holding cost, nonlinear stock dependent demand and trade credit" Computers and Industrial Engineering 139 (2020): 105557.
Diabat, A., Taleizadeh, A.A., and Lashgari, M. "A lot sizing model with partial downstream delayed payment, partial upstream advance payment, and partial backordering for deteriorating items" Journal of Manufacturing Systems 45 (2017): 322–342.
Dye, C.Y. "The effect of preservation technology investment on a non-instantaneous deteriorating inventory model" Omega 41 (5) (2013): 872–880.
Goyal, S.K., Morin, D., and Nebebe, F. "The finite horizon trended inventory replenishment problem with shortages" Journal of the Operational Research Society 43 (12) (1992): 1173–1178.
Kaliraman, N.K., Raj, R., Chandra, S., and Chaudhary, H. "Two warehouse inventory model for deteriorating item with exponential demand rate and permissible delay in payment" Yugoslav Journal of Operations Research 27 (1) (2017): 109–124.
Khalilpourazari, S., and Pasandideh, S.H.R. "Multi-item EOQ model with nonlinear unit holding cost and partial backordering: moth-flame optimization algorithm" Yugoslav Journal of Operations Research 34 (1) (2017): 42–51.
Khan, M.A.A., Shaikh, A.A., Panda, G., Konstantaras, I., and Cárdenas-Barrón, L.E. "The effect of advance payment with discount facility on supply decisions of deteriorating products whose demand is both price and stock dependent" International Transactions in Operational Research 27 (2020): 1343–1367.
Krishnamoorthi, C.C., and Sivashankari, C.K. "The effect of advance payment with discount facility on supply decisions of deteriorating products whose demand is both price and stock dependent" Yugoslav Journal of Operations Research 27 (4) (2017): 499–519.
Lin, C., Tan, B., and Lee, W.C. "An EOQ model for deteriorating items with time-varying demand and shortages" International Journal of Systems Science 31 (3) (2000): 319–400.
Mandal, M., and Maiti, M. "Inventory of damageable items with variable replenishment rate, stock-dependent demand and some units in hand" Applied Mathematical Modelling 23 (10) (1999): 799–807.
Mishra, U., Cárdenas-Barrón, L.E., Tiwari, S., Shaikh, A.A., and Treviño-Garza, G. "An inventory model under price and stock dependent demand for controllable deterioration rate with shortages and preservation technology investment" Annals of Operations Research 254 (1-2) (2017): 165–190.
Mishra, U., Tijerina-Aguilera, J., Tiwari, S., and Cárdenas-Barrón, L.E. "Retailer’s joint ordering, pricing and preservation technology investment policies for a deteriorating item under permissible delay in payments" Mathematical Problems in Engineering 2018 (2018): 1-14.
Prasad, K., and Mukherjee, B. "Optimal inventory model under stock and time dependent demand for time varying deterioration rate with shortages" Annals of Operations Research 243 (1-2) (2016): 323–334.
Ray, J., and Chaudhuri, K.S. "An EOQ model with stock-dependent demand, shortage, inflation and time discounting" International Journal of Production Economics 53 (2) (1997): 171–180.
Roy, T., and Chaudhuri, K.S. "A production-inventory model under stock dependent demand, Weibull distribution deterioration and shortage" International Transactions in Operational Research 16 (3) (2009): 325–346.
San José, L.A., Sicilia, J., and García-Laguna, J. "Analysis of an inventory system with exponential partial backordering" International Journal of Production Economics 100 (1) (2006): 76–86.
Singh, S.R., and Rathore, H. "Optimal payment policy with preservation technology investment and shortages under trade credit" Indian Journal of Science and Technology 10 (1) (2015): 8203.
Shah, N.H., Chaudhari, U., and Jani, M.Y. "Optimal control analysis for service, inventory and preservation technology investment" International Journal of Systems Science: Operations and Logistics 6 (2) (2019): 130–142.
Taleizadeh, A.A., Niaki, S.T.A., and Seyedjavadi, S.M.H. "Multi-product multi-chance-constraint stochastic inventory control problem with dynamic demand and partial back-ordering: A harmony search algorithm" Journal of Manufacturing Systems 31 (2) (2012): 204–213.
Taleizadeh, A.A. "An EOQ model with partial backordering and advance payments for an evaporating item" International Journal of Production Economics 155 (2014): 185–193.
Tan, Y., and Weng, M.X. "A discrete-in-time deteriorating inventory model with time-varying demand, variable deterioration rate and waiting time-dependent partial backlogging" International Journal of Systems Science 44 (8) (2013): 1483–1493.
Tayal, S., Singh, S.R., and Sharma, R. "An integrated production inventory model for perishable products with trade credit period and investment in preservation technology" International Journal of Mathematics in Operational Research 8 (2) (2016): 137–163.
Tiwari, S., Cárdenas-Barrón, L.E., Shaikh, A.A., and Goh, M. "Retailer’s optimal ordering policy for deteriorating items under order-size dependent trade credit and complete backlogging" Computers and Industrial Engineering 139 (2020): 105559.
Tripathi, R.P., and Aneja, S. "Inventory models for stock-dependent demand and time varying holding cost under different trade credits" Yugoslav Journal of Operations Research 28 (1) (2017): 139–151.
Wee, H.M. "A deterministic lot-size inventory model for deteriorating items with shortages and a declining market" Computers and Operations Research 22 (3) (1995): 345–356.
Wu, K.S., Ouyang, L.Y., and Yang, C.T. "An optimal replenishment policy for non-instantaneous deteriorating items with stock-dependent demand and partial backlogging" International Journal of Production Economics 101 (2) (2006): 369–384.
Wuu Wu, J., and Chuan Lee, W. "An EOQ inventory model for items with Weibull deterioration, shortages and time varying demand" Journal of Information and Optimization Sciences 24 (1) (2003): 103–122.
Yang, C.T. "An inventory model with both stock-dependent demand rate and stock-dependent holding cost rate" International Journal of Production Economics 155 (2014): 214–221.
Downloads
Published
Issue
Section
License
Copyright (c) 2021 YUJOR
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
