An Integrated Inventory Model of Deteriorated Items with Exponential Demand and Linear Deterioration Rate

Abstract

In a system of inventory production manufacturer yields the item at a rate, discharges the quantities ordered to the customers in certain intervals and for successive deliveries stores the surplus inventory. In frequent real situations, manager for inventory holds the thousand of items in an inventory. Yet, these inventory model for single item are expanded for demand i.e., both for stationary and non-stationary. As in a competitive market the overview of the vendor and the buyer is to maximize their profit and an integrated policy is required by the vendor in general. Numerous models have been evolved in literature for deteriorated item with constant demand. Later on it has been considered that in real life demand of any item either depends on time or selling price. The present thesis emphasis on an inventory model in which demand varies at an exponential rate and linear deterioration rate. The work is further divided into two chapters. Chapter I is introductory in nature in which some basic inventory models have been discussed. An integrated inventory model of economic ordering policy of deteriorated items for vendor and buyer is also discussed. The literature related to this work has also been given in this chapter. In chapter II, the economic ordering policy of deteriorated items for vendor and buyer (Yang and Wee(2000)) has been considered in which constant demand rate and deterioration rate is replaced by exponential and linear rate respectively.