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Growing Science » International Journal of Industrial Engineering Computations » Replenishment policy for non-instantaneous deteriorating items in a two storage facilities under inflationary conditions

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International Journal of Industrial Engineering Computations

ISSN 1923-2934 (Online) - ISSN 1923-2926 (Print)
Quarterly Publication
Volume 7 Issue 3 pp. 489-506 , 2016

Replenishment policy for non-instantaneous deteriorating items in a two storage facilities under inflationary conditions Pages 489-506 Right click to download the paper Download PDF

Authors: Chandra K. Jaggi, Sunil Tiwari, Satish K. Goel

DOI: 10.5267/j.ijiec.2015.12.001

Keywords: Inflation, Inventory, Non-instantaneous deterioration, Partial backlogging, Two-warehouse

Abstract: The present study investigates an inventory model for non-instantaneous deteriorating items under inflationary conditions with partially backlogged shortages. In today’s market structure consumers are looking for goods for which there is a delay in deterioration. At the same time, the consumers’ willingness to wait has been decreased over time, which leads to lost sales. Moreover in financial decision-making, the effects of inflation and time value of money cannot be oblivious to an inventory system. In this scenario, managing inventory of goods remains a challenging task for the decision makers, who may also have to rent warehouse under different prevailing factors such as, bulk discount, limited space in the retail outlet, or increasing inflation rates. With a focus on reduction of costs and increasing customer service, warehouse decision models are crucial for an organization’s profitability. Hence a mathematical model has been developed in the view of above scenario, in order to determine the optimal policy for the decision maker, by minimizing the present worth of total cost. The optimization procedure has been illustrated by a numerical example and detailed sensitivity analysis of the optimal solution has been performed to showcase the effect of various parameters. Managerial implications has also been presented to aid the decision making process.

How to cite this paper
Jaggi, C., Tiwari, S & Goel, S. (2016). Replenishment policy for non-instantaneous deteriorating items in a two storage facilities under inflationary conditions.International Journal of Industrial Engineering Computations , 7(3), 489-506.

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Journal: International Journal of Industrial Engineering Computations | Year: 2016 | Volume: 7 | Issue: 3 | Views: 2577 | Reviews: 0

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