Article ID: | iaor2006713 |
Country: | Cuba |
Volume: | 26 |
Issue: | 1 |
Start Page Number: | 3 |
End Page Number: | 9 |
Publication Date: | Jan 2005 |
Journal: | Revista de Investigacin Operacional |
Authors: | Shah Nita H., Mehta Niketa J. |
Keywords: | deteriorating items |
An inventory model for deteriorating items is considered in which demand increases with respect to time, deterioration rate, inventory holding cost and ordering cost are all continuous functions of time. Shortages are completely backlogged. The planning horizon is finite. The optimal replenishment policy and decision rule, which minimizes the total cost, is developed. A numerical example is given to illustrate the derived model. Sensitivity analysis is presented for the model.