Abstract
The idea behind this work is to build a model with shortages for perishable good. In the past study, many inventory systems have not considered the effect of deterioration of goods which decline the inventory continuously for some products like medicine, milk-made items, vegetables, fruits. Here in this paper, we consider extra cost due to deterioration. We also introduce three different types of demand rates, viz. linear function of time, price-dependent and constant demand rate. Existing researches on this topic focus only on single demand rate and with trade credit for deteriorating items. The present investigation includes many parameters simultaneously like deterioration, shortages, different types of demand functions.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Goyal SK (1985) Economic order quantity under conditions of permissible delay in payments. J Oper Res Soc 36:335–338
Shah NH (1993) Probabilistic time-scheduling model for an exponentially decaying inventory when delay in payments is permissible. Int J Prod Econ 32:77–82
Aggarwal SP, Jaggi CK (1995) Ordering policies for deteriorating items under permissible delay in payments. J Oper Res Soc 46:658–662
Jamal AMM, Sarker BR, Wang S (1997) An ordering policy for deteriorating items with allowable shortages and permissible delay in payment. J Oper Res Soc 48:826–833
Hwang H, Shinn SW (1997) Retailer’s pricing and lot sizing policy for exponentially deteriorating products under the conditions of permissible delay in Payments. Comput Oper Res 24:539–547
Liao HC, Tsai CH, Su CT (2000) An inventory model with deteriorating items under inflation when a delay in payment is permissible. Int J Prod Econ 63:207–214
Chang HJ, Dye CY (2001) An inventory model for deteriorating items with partial backlogging and permissible delay in payments. Int J Syst Sci 32:345–352
Chang HJ, Hung CH, Dye CY (2001) An inventory model for deteriorating items with linear trend demand under the condition of permissible delay in payments. Prod Plan Control 12:274–282
Goyal SK, Giri BC (2001) Recent trends in modeling of deteriorating inventory. Eur J Oper Res 134:1–16
Teng JT, Chang CT, Goyal SK (2005) Optimal pricing and ordering policy under permissible delay in payments. Int J Prod Econ 97:121–129
Shah NH (2006) Inventory model for deteriorating items and time value of money for a finite time horizon under permissible delay in payments. Int J Syst Sci 37:9–15
Soni H, Gor AS, Shah NH (2006) An EOQ model for progressive payment scheme under DCF approach. Asia-Pac J Oper Res 23:500–524
Ouyang LY, Wu KS, Yang CT (2006) A study on an inventory model for non-instantaneous deteriorating items with permissible delay in payments. Comput Ind Eng 51:637–651
Chang CT, Teng JT, Goyal SK (2008) Inventory lot sizing models under trade credits. Asia-Pac J Oper Res 25:89–112
Rong M, Mahapatra NK, Maiti M (2008) A two-warehouse inventory model for a deteriorating item with partially/ fully backlogged shortage and fuzzy lead time. Eur J Oper Res 189:59–75
Madhavilata M, Rao KS, Ravindranath V (2011) An order level inventory model under L2-system with exponentially increasing demand. Int J Eng Res Appl 1(4):1744–1750
Min J, Zhou YW, Liu GQ, Wang SD (2012) An EPQ model for deteriorating items with inventory level dependent demand and permissible delay in payments. Int J Syst Sci 43:1039–1053
Agrawal S, Banerjee S, Papachristos S (2013) Inventory model with deteriorating items, ramp-type demand and partially backlogged shortages for a two warehouse system. Appl Math Model 37:8912–8929
Sicilia J, González-De-la-Rosa M, Febles-Acosta J, Alcaide-López-de-Pablo D (2014) An inventory model for deteriorating items with shortages and time-varying demand. Int J Prod Econ 155:155–162
Guchhait P, Maiti MK, Maiti M (2015) An EOQ model of deteriorating item in imprecise environment with dynamic deterioration and credit linked demand. Appl Math Model 39:6553–6567
Xu Y, Bisi A, Dada M (2017) A finite-horizon inventory system with partial backorders and inventory holdback. Oper Res Lett 45:315–322
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2019 Springer Nature Singapore Pte Ltd.
About this chapter
Cite this chapter
Singh, S., Sharma, G.C. (2019). Inventory Model with Shortages and Deterioration for Three Different Demand Rates. In: Deep, K., Jain, M., Salhi, S. (eds) Logistics, Supply Chain and Financial Predictive Analytics. Asset Analytics. Springer, Singapore. https://doi.org/10.1007/978-981-13-0872-7_5
Download citation
DOI: https://doi.org/10.1007/978-981-13-0872-7_5
Published:
Publisher Name: Springer, Singapore
Print ISBN: 978-981-13-0871-0
Online ISBN: 978-981-13-0872-7
eBook Packages: Business and ManagementBusiness and Management (R0)