A note on inventory model for ameliorating items with time dependent second order demand rate

• Main Authors: Gobinda Chandra Panda, Satyajit Sahoo, Pravat Kumar Sukla
• Format: Article
• Language: English
• Published: Poznań School of Logistics 2013-03-01
• Series: LogForum
• Subjects: Inventory model; Ameliorate rate; Economic order quantity; partial selling-quantity; second order demand
• Online Access: http://www.logforum.net/vol9/issue1/no6/9_1_6_13.pdf

Background: This paper is concerned with the development of ameliorating inventory models. The ameliorating inventory is the inventory of goods whose utility increases over the time by ameliorating activation. Material and Methods: This study is performed according to two areas: one is an economic order quantity (EOQ) model for the items whose utility is ameliorating in accordance with Weibull distribution, and the other is a partial selling quantity (PSQ) model developed for selling the surplus inventory accumulated by ameliorating activation with linear demand. The aim of this paper was to develop a mathematical model for inventory type concerned in the paper. Numerical examples were presented show the effect of ameliorating rate on inventory polices.  Results and Conclusions:  The inventory model for items with Weibull ameliorating is developed. For the case of small ameliorating rate (less than linear demand rate), EOQ model is developed, and for the case where ameliorating rate is greater than linear demand rate, PSQ model is developed.  .