An EOQ model for a deteriorating item with time dependent quadratic demand and variable deterioration under permissible delay in payment

Abstract

In a recent paper, Khanra, Ghosh and Chaudhuri's (2011) presented an EOQ model for a deteriorating item with time dependent quadratic demand under permissible delay in payment. Deterioration considered in most of the EOQ models is constant, while in most of the practical cases the deterioration rate increases with time. This work is motivated by Khanra, Ghosh and Chaudhuri's (2011) paper extending their model to allow for a variable rate of deterioration when delay in payment is permissible. The time varying demand rate is taken to be a quadratic function of time. For settling the account, the model is developed under two circumstances: case-1: The credit period is less than or equal to the cycle time and case-2: the credit period is greater than the cycle time. A numerical example is provided to illustrate the model. Sensitivity analysis has also been conducted to study the effect of the parameters.

A Production Inventory Model of Constant Production Rate and Demand of Level Dependent Linear Trend

“…Abad [20] discussed regarding optimal pricing and lot sizing under conditions of perish ability and partial backordering. Sing and Pattanak [21]- [23] developed the model for deterioration and time dependent quadratic demand under permissible delay in payment, whereas we have used the demand of linear trend but ignoring the payment aspect. Amutha and Chandrasekaran [24] formulated the inventory model with deterioration items, quadratic demand and time dependent holding cost, but in our proposed model, we have emphasized on the production rate, linear type of demand and constant holding cost.…”

An Inventory Model for Deteriorating Items with Generalised Exponential Decreasing Demand, Constant Holding Cost and Time-Varying Deterioration Rate

“…Singh and Pattnayk [16] also in their work presented an Economic Order Quantity (EOQ) model for deteriorating items with time-dependent quadratic demand and variable deterioration, under permissible delay in payment. Dash et al [17] also developed an inventory model for deteriorating items having a time-dependent exponential declining demand rate and time-varying holding cost as a linear function of time.…”

An Optimal Policy with Quadratic Demand, Three-Parameter Weibull Distribution Deterioration Rate, Shortages and Salvage Value

“…However, most of the above model mainly based on time-varying demands like linearly or exponential. Considering the quadratic demand as the next realistic approach, Ghosh and Chaudhuri [29], Khanra et al [30] and Singh and Pattnayak [31] developed their inventory models for deteriorating items. Singh et al [32] developed an EOQ model for deteriorating items under permissible delay in payment by considering stock dependent demand.…”