Article ID: | iaor2009816 |
Country: | Netherlands |
Volume: | 54 |
Issue: | 2 |
Start Page Number: | 301 |
End Page Number: | 314 |
Publication Date: | Mar 2008 |
Journal: | Computers & Industrial Engineering |
Authors: | Basu M., Panda S., Senapati S. |
Keywords: | deteriorating items, seasonality |
A single item order level inventory model for a seasonal product is discussed where the demand rate is represented by a ramp-type time dependent function. A constant fraction of on hand inventory deteriorates per unit time. Shortages are not allowed. The model is developed over a finite time horizon (time period of a season) to determine optimal replenishment policy by minimizing total system running cost of entire season. An algorithm is provided to find the solution of the problem. A numerical example is presented and sensitivity analysis of the model is carried out. The rationale for time dependent ramp-type demand is also discussed.