An optimal policy for deteriorating items with time-proportional deterioration rate and constant and time-dependent linear demand rate

Singh, Trailokyanath; Mishra, Pandit Jagatananda; Pattanayak, Hadibandhu

doi:10.1007/s40092-017-0198-6

Cited by 18 publications

(12 citation statements)

References 38 publications

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“…constant or depending on the waiting time until the arrival of the next batch. Mahapatra [7] study a model for high reliability products: buyers are inclined to acquire high-quality products to reduce maintenance costs and the possibility of failure, stock-out is partially managed in backorder. Kumar [8] examines the effect of a time-dependent linear demand in case of positive stock level, and a constant demand during stock-out.…”

Section: Literature Reviewmentioning

confidence: 99%

EOQ inventory model for perishable products under uncertainty

Patriarca

Gravio

Costantino

et al. 2020

Prod. Eng. Res. Devel.

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Perishable products require accurate inventory control models as their effect on operations management can be critical. This assumption is particularly relevant in highly uncertain and dynamic markets, as for the ones generated by the pandemic era. This paper presents an inventory control model for perishable items with a demand rate variable over time, and dependent on the inventory rate. The model also considers the potential for backlogging and lost sales. Imperfect product quality is included, and deterioration is modelled as a time-dependent variable. The framework envisages the possibility to define variables affected by uncertainty in terms of probability distribution functions, which are then jointly managed via a Monte Carlo simulation. This paper is intended to provide an analytical formulation to deal with uncertainty and time-dependent inventory functions to be used for a variety of perishable products. The formulation is designed to support decision-making for the identification of the optimal order quantity. A numerical example exemplifies the outcomes of the paper and provides a cost-based sensitivity analysis to understand the role of main parameters.

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Section: Literature Reviewmentioning

confidence: 99%

EOQ inventory model for perishable products under uncertainty

Patriarca

Gravio

Costantino

et al. 2020

Prod. Eng. Res. Devel.

View full text Add to dashboard Cite

show abstract

“…An algorithm based on the generalized reduced gradient method to find the optimal solution is utilized as previously implemented [20,25,26,37,39]. Finally, the maximal nature of the solution is verified through the Hessian matrix as approached by previous research [33,35,36].…”

Section: Solution Proceduresmentioning

confidence: 99%

“…Within the scope of deteriorating inventory models, literature can be categorized by the start of the deterioration process within the cycle. Earlier papers that did not consider preservation adopted the straightforward approach where deterioration begins at the start of the cycle [1,3,8,9,19,23,31,32,33]. This approach has been adopted by recent studies that now consider preservation to affect the deterioration process [4,6,7,12,20,22,29].…”

Section: Introductionmentioning

confidence: 99%

Improved Preservation Technology for Non-Instantaneous Deteriorating Inventory Using Boundary Condition Estimation

Hishamuddin¹,

Supadi²,

Omar³

2020

ACM

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Various forms of preservation technology nowadays allow businesses to handle valuable perishable items with greater flexibility. Even with a wide variety of preservation techniques, the mathematical modelling of its implementation in EOQ literature remains rigid. The paper aims to integrate an improved preservation technology in a non-instantaneous deteriorating inventory model for businesses maximizing their average total cycle profit. The improved preservation technology furthers the delay to the time within the cycle where deterioration begins and enhances the durability of inventory that allows operators to employ a less prudent holding facility. Another improvement in this area is the accurate accumulation of preservation cost depending on the inventory level at hand. The conventional EOQ method of forming the objective function before choosing the optimal values for our two decision variables (Cycle time and level of preservation) is undertaken. The cycle time is split in two, differing in their inventory process (deterioration beginning in the second period). The time when deterioration begins is derived using the model's boundary conditions, a first attempt within the area. The optimal solution set is solved for a numerical example using an algorithm to demonstrate the model and prove the global nature of the solution. An investigation into the gains from the improved preservation technology is conducted by dissecting the effects within each individual component within the objective function. 3 separate channels by which this improved preservation technology modelling benefits the business model is found namely shifting to the higher profitable period, effects towards preservation affected costs and the returns to scale from successively increasing preservation levels. Sensitivity analysis is conducted to demonstrate and confirm the findings. The paper discovers great benefits from such an improved modelling that warrants further attention within the scope of preserved inventory models, especially on how levels of preservation could influence the traditional decision variable optimized such as cycle time or ordering frequency. Findings of the paper would have significant benefits to different inventory models with its own delay before deterioration and holding facility requirement.

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“…Therefore, Wang and Yue introduced a data mining food safety precautionary system for a sustainable supply chain (Wang and Yue 2017). Other aspects of deteriorating items have been studied by several researchers (Singh et al 2017;Sundara Rajan and Uthayakumar 2017;Uthayakumar and Tharani 2017).…”

Section: Literature Reviewmentioning

confidence: 99%

A reverse logistics chain mathematical model for a sustainable production system of perishable goods based on demand optimization

2018

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Sustainability in the supply chain means pushing the supply chain to focus on social, economic and environmental aspects, and addressing the existing problems in the traditional supply chain. Considering the importance of evaluating supply chain networks, especially in the field of perishable commodities, this paper aimed to design a mathematical model for the reverse supply chain of perishable goods, taking into account the sustainable production system. In this research, four objective functions were considered to maximize profitability and the level of satisfaction with the use of technology, minimize costs and measure environmental impacts. The results of the implementation of the proposed model for a manufacturing company show that objective functions are sensitive to demand, so the change in demand changes the objective functions, in particular the profitability function.

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An optimal policy for deteriorating items with time-proportional deterioration rate and constant and time-dependent linear demand rate

Cited by 18 publications

References 38 publications

EOQ inventory model for perishable products under uncertainty

EOQ inventory model for perishable products under uncertainty

Improved Preservation Technology for Non-Instantaneous Deteriorating Inventory Using Boundary Condition Estimation

A reverse logistics chain mathematical model for a sustainable production system of perishable goods based on demand optimization

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