The effects of inflation and time-value of money on an economic order quantity model with a random product life cycle

2000 ◽  
Vol 125 (3) ◽  
pp. 588-601 ◽  
Author(s):  
Ilkyeong Moon ◽  
Suyeon Lee
Keyword(s):  
Life Cycle ◽  
Product Life Cycle ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity ◽  
Product Life ◽  
Time Value Of Money ◽  
Time Value ◽  
Random Product ◽  
Value Of Money

THE EFFECTS OF INFLATION AND TIME VALUE OF MONEY ON A PRODUCTION MODEL WITH A RANDOM PRODUCT LIFE CYCLE

2010 ◽  
Vol 27 (04) ◽  
pp. 437-456 ◽  
Author(s):  
JONAS C. P. YU ◽  
HUI-MING WEE ◽  
GEDE A. WIDYADANA ◽  
JER-YUAN CHANG
Keyword(s):  
Life Cycle ◽  
Product Life Cycle ◽  
Planning Horizon ◽  
Production Model ◽  
Sensitivity Analyses ◽  
Product Life ◽  
Time Value Of Money ◽  
Time Value ◽  
Production Stage ◽  
Value Of Money

In Moon and Lee's model (2000), they developed a finite planning horizon economic order quantity (EOQ) model with time value of money and inflation. This paper extends Moon and Lee's model to examine a production system with a random life cycle. Two conditions are discussed: the first is when the product life cycle ends in the production stage and the second is when the product life cycle ends in the non-production stage. We develop an algorithm to derive the optimal period time and expected total cost. Numerical examples and sensitivity analyses are given to validate the results of the production model.

scholarly journals Economic order quantity for perishables with decreasing willingness to purchase during their life cycle

2020 ◽  
Vol 7 ◽  
pp. 100146
Author(s):  
Ronald David Suárez Díaz ◽  
Carlos D. Paternina-Arboleda ◽  
José Luis Martínez-Flores ◽  
Miguel A. Jimenez-Barros
Keyword(s):  
Life Cycle ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity ◽  
Willingness To Purchase

scholarly journals AN OPTIMIZATION OF FEOQ MODEL FOR WEIBULL DETERIORATING ITEMS WITH INFLATIONARY CONDITION

2019 ◽  
pp. 33-50
Author(s):  
Anu Sayal ◽  
A. P. Singh ◽  
Deepak Aggarwal
Keyword(s):  
Inventory System ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity ◽  
Centroid Method ◽  
Time Value Of Money ◽  
Total Cost ◽  
Total Profit ◽  
Time Required ◽  
The Cost

The economic instability is a haunting situation in the present era for the economy. There is a monetary depreciation due to the tremendous increase in the price of the commodities. Present study basically deals with the investigation of the inventory system considering the case of perishable products under inflationary environment under condition of partial backorder. The rate of demand is a function which exponentially increases with increase in inflation and deterioration is taken as a Weibull distributed two parameter function. In the state of shortage when the inventory system runs out of stock an assumption is made that the demands are backlogged or lost. There is a variation in the rate of backlogging which shows this variation as a consequence of lead time required for the arrival of the next replenishment. The deterioration of commodities begins after a fixed interval of time. Present model aims at minimizing the average total cost considering both the crisp and fuzzy environments considering both inflationary effect as well as the time value of money. For the fuzzy economic order quantity (FEOQ) model of the inventory system fuzzification has been done by the use of fuzzy number of the trapezoidal nature. Defuzzification has been done by the use of centroid method. The primary motive of this work is to determine and compare the cost in total of the system of inventory in both crisp and fuzzy environments. The main inference that we can draw from this study is that fuzzy economic order quantity (FEOQ) model has more accuracy as in this model the total cost has been reduced as compared to the crisp model. Thus fuzzy economic order quantity (FEOQ) model is highly beneficial to any sort of inventory system and this result can be further generalized to any sector for enhancing the total profit of the system. Appropriate example has been provided for the illustration of both the models.  

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