Deteriorating inventory model with time-varying and pricing demand and partial backlogging

• Main Authors: Ru-Yu Huang, 黃如妤
• Other Authors: 李汶娟
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/hbad7g

碩士 === 長榮大學 === 國際企業研究所 === 97 === In reality, the deterioration of goods is one common and vital factor to decrease the inventory quantity. Although in the classical EOQ model, it was often discussed the demand as one important factor. The previous references assumed that the product can be unlimitedly saved and the demand rate is a fixed constant. Consequently, the one purpose of this study is to discuss the demand is unsatisfied because of the close relation between price and time. Moreover, there are customers who are willing to wait and receive their orders at the end of shortage period, while others are not. The longer that waiting time to the customer, the smaller backlogging rate would be happened. The objective of this research is to make a better ordering and pricing decision for the deteriorating product in a finite horizon. Due to the close relation between price and time as mentioned, the study considers the linear demand rate and Weibull deterioration rate. The assumption of shortages will be a negative relation between waiting time and partial backlogging. Hence, this study will find the best ordering and pricing decision under the profit maximization. After making two examples, the final solution is illustrated by algorithm and examined by sensitivity analyses.