Economic order quantity models for ameliorating/deteriorating items under inflation and time discounting

Economic order quantity models for ameliorating/deteriorating items under inflation and time discounting

0.00 Avg rating0 Votes
Article ID: iaor200638
Country: Netherlands
Volume: 162
Issue: 3
Start Page Number: 773
End Page Number: 785
Publication Date: May 2005
Journal: European Journal of Operational Research
Authors: , ,
Keywords: economic order, inflation, deteriorating items
Abstract:

The items that incur a gradual loss in quality or quantity over time while in inventory are usually called deteriorating items. In reality, there are some items whose value or utility or quantity increase with time and those items can be termed as ameliorating items. In this paper, an effort has been made to incorporate these two opposite physical characteristics of stored items into inventory model. We develop models for ameliorating/deteriorating items with time-varying demand pattern over a finite planning horizon, taking into account the effects of inflation and time value of money. Optimal solutions of the proposed models are derived and the effects of amelioration/deterioration on the inventory replenishment policies are studied with the help of numerical examples.

Reviews

Required fields are marked *. Your email address will not be published.