Article ID: | iaor20042445 |
Country: | United Kingdom |
Volume: | 30 |
Issue: | 12 |
Start Page Number: | 1901 |
End Page Number: | 1916 |
Publication Date: | Oct 2003 |
Journal: | Computers and Operations Research |
Authors: | Chaudhuri K.S., Khanra S. |
An order-level inventory problem is discussed with the demand rate being represented by a continuous, quadratic function of time. It is assumed that a constant fraction of the on-hand inventory deteriorates per unit of time. The solution of the model is discussed both for infinite and finite time-horizon. A numerical example is taken up to illustrate the solution procedure and sensitivity analysis is also carried out. The rationale for the time-dependent quadratic demand is discussed.