An inventory model for deteriorating items with shortages and stock-dependent demand under inflation for two-shops under one management

Abstract

In this study, we propose an inventory model for a differential item, units of which are not in perfect conditions, sold from two-shops-primary and secondary shop, under one management is formulated with stock-dependent demand rate and inflation. Initially, items are purchased in lots and received at the primary shop with an infinite rate of replenishment, then perfect and defective units are separated, only the perfect/ good units are sold from the primary with a profit and its demand is a deterministic linear function of current stock level. The defective units spotted at the time of selling of the good products from the lot are transferred continuously to the adjacent secondary shop for sale at a reduced price and demand for these units is linearly proportional to the selling price. In both shops, shortages are allowed. In this study, there are three scenarios depending upon the time of occurrence of shortages at the shops. At the secondary shop, the time of shortages occurs: (1) exactly at the same time or (2) before or (3) after the time of shortages at the primary shop. In each case under each scenario, profit is maximized and optimum order quantities are evaluated using the computer algorithm based on a gradient method. Finally, a numerical example and sensitivity analysis is used to study the behavior of the model.

Imperfect Production System under Reverse Logistics in Stock-Out Situation: EPQ Model

“…S. R. Singh and C. Singh [8] worked on supply chain model with stochastic lead time under imprecise partially backlogging for expiring items. Singh et al [30] contributed on an inventory model for deteriorating items with shortages and stock-dependent demand under inflation for two shops under one management. Konstantaras and Skouri [31] presented a model by considering a general cycle pattern in which a variable number of reproduction lots of equal size were followed by a variable number of manufacturing lots of equal size.…”

Green design and product stewardship approach for two-warehouse inventory model

“…to reveal this factor, Lee et al (28) proposed a two warehouse production model for deteriorating items with time-dependent demand. Singh et al (29) evaluated an inventory model for deteriorating items with shortages and stock-dependent demand under inflation for two shops under one management. Hariga (30) worked on an inventory model for the multi-warehouse under a fixed and flexible space leasing contract.…”

Effect of learning and salvage worth on an inventory model for deteriorating items with inventory-dependent demand rate and partial backlogging with capability constraints

“…Singh et al (2009) offered a two-warehouse inventory model for deteriorating things with shortages underneath inflation and time-value of cash. Singh et al (2010) conferred a listing model with stock-dependent demand underneath the impact of inflation and 2 outlets of one management. Singh et al (2011) developed a settled two-warehouse inventory model for deteriorating things with stock-dependent demand and shortages.…”