• PERISHABLE INVENTORY MODEL WITH FINITE RATE OF REPLENISHMENT HAVING WEIBULL LIFETIME AND DEMAND AS FUNCTION OF BOTH SELLING PRICE AND TIME

R. John Mathew*

Abstract


In this paper we develop and analyse an inventory model for deteriorating items with Weibull rate of decay having finite rate of replenishment and demand as function of both selling price and time with shortages. Using the differential equations, the instantaneous state of inventory at time‘t’, the amount of deterioration etc. are derived. With suitable cost considerations the total cost function and profit rate function are also obtained by maximizing the profit rate function, the optimal ordering and pricing policies of the model are derived. The sensitivity of the model with respect to the parameters is discussed through numerical illustration. It is observed that the deteriorating parameters have a tremendous influence on the optimal selling price and ordering quantity.


Keywords


Perishability, Instantaneous rate of deterioration, Total cost function, Profit rate function, the optimal ordering and pricing policies.

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