Article ID: | iaor19992201 |
Country: | Netherlands |
Volume: | 105 |
Issue: | 3 |
Start Page Number: | 467 |
End Page Number: | 474 |
Publication Date: | Mar 1998 |
Journal: | European Journal of Operational Research |
Authors: | Chaudhuri K.S., Giri B.C. |
Keywords: | deteriorating items |
This paper deals with an extended economic order quantity type inventory model for a perishable product where the demand rate is a function of the on-hand inventory. The traditional parameters of unit item cost and ordering cost are kept constant; but the holding cost is treated as (i) a nonlinear function of the length of time for which the item is held in stock, and (ii) a functional form of the amount of the on-hand inventory. The approximate optimal solution in both the cases is derived. Computational results are presented indicating the effects of nonlinearity in holding costs.