An Inventory Model for Deteriorating Items with Stochastic Demand, Variable Lead Time, Shortages Considering Inflation and Time Value of Money

2014 ◽  
Vol 3 (2) ◽  
pp. 111-125
Author(s):  
Gabriel Akanbi ◽  
Obafunmilola Fagade
Keyword(s):  
Lead Time ◽  
Stochastic Demand ◽  
Inventory Model ◽  
Deteriorating Items ◽  
Time Value Of Money ◽  
Time Value ◽  
Value Of Money

An Integrated Vendor-Buyer Model with Uncertain Lead Time, Life Time under Inflation and Variable Holding Cost

2011 ◽  
Vol 2 (3) ◽  
pp. 54-63 ◽  
Author(s):  
S. R. Singh ◽  
Diksha Bhatia
Keyword(s):  
Lead Time ◽  
Life Time ◽  
Time Value Of Money ◽  
Time Value ◽  
Deterioration Rate ◽  
Holding Cost ◽  
Variable Holding Cost ◽  
Value Of Money ◽  
Unsatisfied Demand ◽  
Shortage Costs

This study considers the problem of a vendor which supplies an item to the buyer with imprecise partial backlogging rate of unsatisfied demand and non instantaneous deterioration rate considering variable holding cost, the effect of inflation and time value of money. The supplier’s lead time is a stochastic function of his managing cost. The extra costs incurred by the retailer due to the uncertain lead time in terms of shortage costs or lost sales costs should be owed by the supplier. A numerical example is cited to illustrate the results and its significant features. Finally, to study the effect of changes of demand parameters, deterioration, inflation and managing cost on supplier and the retailer’s profit, a sensitivity analysis is presented numerically.

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