Arjun Paul


1 An Economic Order Quantity Model for Deteriorating Items with Ramp Type Demand, Time Dependent Holding Cost and Price Discount Offered on Backorders

Authors: Adrijit Goswami, Arjun Paul


In our present work, an economic order quantity inventory model with shortages is developed where holding cost is expressed as linearly increasing function of time and demand rate is a ramp type function of time. The items considered in the model are deteriorating in nature so that a small fraction of the items is depleted with the passage of time. In order to consider a more realistic situation, the deterioration rate is assumed to follow a continuous uniform distribution with the parameters involved being triangular fuzzy numbers. The inventory manager offers his customer a discount in case he is willing to backorder his demand when there is a stock-out. The optimum ordering policy and the optimum discount offered for each backorder are determined by minimizing the total cost in a replenishment interval. For better illustration of our proposed model in both the crisp and fuzzy sense and for providing richer insights, a numerical example is cited to exemplify the policy and to analyze the sensitivity of the model parameters.

Keywords: shortage, fuzzy deterioration rate, price discount on backorder, ramp type demand, time varying holding cost

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