A Stochastic Inventory Model with Quality-Dependent Demand

1997 ◽  
Vol 47 (3-4) ◽  
pp. 215-222
Author(s):  
G. Mohan Naidu ◽  
K. V. S. Sarma
Keyword(s):  
Inventory Model ◽  
Optimal Order ◽  
Stochastic Inventory ◽  
Stochastic Inventory Model ◽  
Demand Rate ◽  
Optimum Cost ◽  
Quality Material ◽  
Theoretical Results ◽  
Dependent Demand

This paper deals with an inventory model in which the demand rate is influenced by the quality of the material received . The case considered is a situation in which the consumption rate is adjusted whenever the incoming material does not have the desired quality but still usable. This leads to uncertainity in the inventory cycle and may create unplanned shortages. The model takes into account differential prices of the material based on quality. The behaviour of the optimal order level and the optimum cost has been studied as a function of the probability with which good quality material can be received. Numerical illustrations are given in support of the theoretical results.

scholarly journals A Production Inventory Model for deteriorating items with backlog-dependent demand

2019 ◽  
Author(s):  
Chayanika Rout ◽  
Debjani Chakraborty ◽  
Prof Adrijit Goswami
Keyword(s):  
Inventory Model ◽  
Constant Function ◽  
Deteriorating Items ◽  
Piecewise Constant Function ◽  
High Quality ◽  
Piecewise Constant ◽  
Production Inventory ◽  
Demand Rate ◽  
Theoretical Results ◽  
Dependent Demand

This paper investigates a production inventory model under classical EPQ framework with the assumption that the customer demand during the stock out period is affected by the accumulated back-orders. The backlog rate is not fixed; instead, the demand rate during stock-out is assumed to decrease proportionally to the existing backlog which is thereby approximated by a piecewise constant function. Deteriorating items are taken into consideration in this proposed work. For better illustration of the theoretical results and to highlight managerial insights, numerical examples arepresentedwhicharethencomparedtotheresultsobtainedbyconsideringanexact (non-approximated) backlogging rate (from literature). The comparisons indicate high quality results for the approximated model.

scholarly journals A stochastic inventory model with stock dependent demand items

2001 ◽  
Vol 14 (4) ◽  
pp. 317-328 ◽  
Author(s):  
Lakdere Benkherouf ◽  
Amin Boumenir ◽  
Lakhdar Aggoun
Keyword(s):  
Variational Inequality ◽  
Continuous Time ◽  
Infinite Horizon ◽  
Inventory Model ◽  
Stochastic Inventory ◽  
Stochastic Inventory Model ◽  
Stock Dependent Demand ◽  
Quasi Variational Inequality ◽  
Discounted Costs ◽  
Dependent Demand

In this paper, we propose a new continuous time stochastic inventory model for stock dependent demand items. We then formulate the problem of finding the optimal replenishment schedule that minimizes the total expected discounted costs over an infinite horizon as a Quasi-Variational Inequality (QVI) problem. The QVI is shown to have a unique solution under some conditions.

scholarly journals A partial backlogging inventory model for non-instantaneous deteriorating items with stock-dependent consumption rate under inflation

2010 ◽  
Vol 20 (1) ◽  
pp. 35-54 ◽  
Author(s):  
Jinh Chang ◽  
Feng Lin
Keyword(s):  
Solution Process ◽  
Optimal Solution ◽  
Planning Horizon ◽  
Inventory Model ◽  
Deteriorating Items ◽  
Optimal Order ◽  
Partial Backlogging ◽  
Demand Rate ◽  
Dependent Demand Rate ◽  
Dependent Demand

In this paper, we derive a partial backlogging inventory model for noninstantaneous deteriorating items with stock-dependent demand rate under inflation over a finite planning horizon. We propose a mathematical model and theorem to find minimum total relevant cost and optimal order quantity. Numerical examples are used to illustrate the developed model and the solution process. Finally, a sensitivity analysis of the optimal solution with respect to system parameters is carried out.

ON A STOCHASTIC INVENTORY MODEL WITH DETERIORATION AND STOCK-DEPENDENT DEMAND ITEMS

2002 ◽  
Vol 16 (2) ◽  
pp. 151-165 ◽  
Author(s):  
Lakdere Benkherouf ◽  
Lakhdar Aggoun
Keyword(s):  
Impulse Control ◽  
Infinite Horizon ◽  
Inventory Model ◽  
Algebraic Equations ◽  
Expected Return ◽  
Stochastic Inventory ◽  
Stochastic Inventory Model ◽  
Stock Dependent Demand ◽  
Optimal Impulse ◽  
Dependent Demand

In this article, we propose a new continuous-time stochastic inventory model with deterioration and stock-dependent demand items. We then formulate the problem of finding the optimal impulse control schedule that minimizes the total expected return over an infinite horizon, as a quasivariational inequality (QVI) problem. The QVI is shown to lead to an (s, S) policy, where s and S are determined uniquely as a solution of some algebraic equations.

Time and Price Dependent Demand with Varying Holding Cost Inventory Model for Deteriorating Items

2013 ◽  
Vol 4 (4) ◽  
pp. 75-95 ◽  
Author(s):  
Diwakar Shukla ◽  
Uttam Kumar Khedlekar ◽  
Raghovendra Pratap Singh Chandel
Keyword(s):  
Simulation Study ◽  
Demand Function ◽  
Inventory Model ◽  
Time Parameter ◽  
Suggested Model ◽  
Open Problems ◽  
Holding Cost ◽  
Theoretical Results ◽  
Dependent Demand ◽  
Better Than

This paper presents an inventory model considering the demand as a parametric dependent linear function of time and price both. The coefficient of time-parameter and coefficient of price-parameter are examined simultaneously and proved that time is dominating variable over price in terms of earning more profit. It is also proved that deterioration of item in the inventory is one of the most sensitive parameter to look into besides many others. The robustness of the suggested model is examined using variations in the input parameters and ranges are specified on which the model is robust on most of occasions and profit is optimal. Two kinds of doubly-demand function strategies are examined and mutually compared in view of the two different cases. Second strategy found better than first. Holding cost is treated as a variable. Theoretical results are supported by numerical based simulation study with robustness. Some recommendations are given at the end for the inventory managers and also open problems are discussed for researchers. This model is more realistic than considered by earlier author.

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