An Optimal Replenishment Policy for Non Instantaneous Deteriorating Items with Stock Dependent, Price Decreasing Demand and Partial Backlogging

Shiv Kumar  and Abhay Kumar Singh

doi:10.17485/ijst/2015/v8i35/70140

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An Optimal Replenishment Policy for Non Instantaneous Deteriorating Items with Stock Dependent, Price Decreasing Demand and Partial Backlogging

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Indian Journal of Science and Technology

DOI: 10.17485/ijst/2015/v8i35/70140

Year: 2015, Volume: 8, Issue: 35, Pages: 1-11

Original Article

An Optimal Replenishment Policy for Non Instantaneous Deteriorating Items with Stock Dependent, Price Decreasing Demand and Partial Backlogging

Shiv Kumar^* and Abhay Kumar Singh

Department of Applied Mathematics, Indian School of Mines, Dhanbad - 826004, Jharkhand, India;
[email protected], [email protected]

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This study is about mathematical modelling of deteriorating items in which demand pattern depends upon the current stock level and selling price of the product. The objective of study is to analyze profit in the business industry. We used optimization techniques and sensitivity analysis to maximize the profit as well as to find the optimal order quantity, optimal selling price and optimal order time to illustrate the behavior of the model. The developed model has wide applications for items such as electronics, high-tech product, automobile, cosmetics, garments, fashionable, commodities, fruits etc. in which stock and selling price play an important role for their demand.
Keywords: Demand, Deterioration, Inventory, Sensitivity Analysis