Indian Journal of Science and Technology

Abstract

The main purpose of this research is to establish replenishment models and develop optimal replenishment policies for perishable items taking account of time value of money. This paper follows the Discounted Cash Flow (DCF) approach to investigate inventory replenishment problem over a fixed planning horizon. We develop model, to establish optimal solutions with and without backlogging and Show thatthe total variable costis minimize and convex by the help of software. Numerical examples are to demonstrate the applicability of the proposed models and sensitivity analysis with respect to the parameters of the system is carried out.
Keywords: Deteriorating, Inventory, Inflation, Time Discounting