Article ID: | iaor19981564 |
Country: | Netherlands |
Volume: | 86 |
Issue: | 2 |
Start Page Number: | 281 |
End Page Number: | 292 |
Publication Date: | Oct 1995 |
Journal: | European Journal of Operational Research |
Authors: | Vrat Prem, Padmanabhan G. |
Keywords: | economic order, deteriorating items |
This paper presents inventory models for perishable items with stock dependent selling rate. The selling rate is assumed to be a function of current inventory level and rate of deterioration is taken to be constant. Under instantaneous replenishment with zero lead time, the model incorporates aspects such as complete, partial, and no backlogging. EOQ is determined for maximizing the total profit in each of the situations. The models developed are illustrated through numerical examples and sensitivity analysis is reported.