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Document details - An Inflationary Trended Inventory ModelforDeteriorating and Ameliorating Items underExponentially IncreasingDemand and Partial Backlogging

Journal Volume 9, Issue 12, December 2020, Article 16163166 Dr. Biswaranjan Mandal , " An Inflationary Trended Inventory ModelforDeteriorating and Ameliorating Items underExponentially IncreasingDemand and Partial Backlogging" , International Journal of Application or Innovation in Engineering & Management (IJAIEM) , Volume 9, Issue 12, December 2020 , pp. 001-010 , ISSN 2319 - 4847.

An Inflationary Trended Inventory ModelforDeteriorating and Ameliorating Items underExponentially IncreasingDemand and Partial Backlogging

    Dr. Biswaranjan Mandal

Abstract

Abstract As the long arm of the grinding, deep financial crisis continues to haunt the global economy, the effects of inflation and time value of money cannot be oblivious to an inventory system. Inflation, defined as a general rise in the prices of goods and services over a period of time, has monetary depreciation as one of its major side effects. And, since inventories correspond to substantial investment in capital for any organization, it would be unethical if the effects of inflation and time value of money are not considered while determining the optimal inventory policy. Moreover, deterioration of items is a phenomenon which cannot be ignored, as it may yield misleading results. But due to lack of considering the influence of demand, the ameliorating items for the amount of inventory is increasing gradually. Amelioration is a natural phenomenon observing in much life stock models. Another important factor is shortages which no retailer would prefer, and in practice are partially backlogged and partially lost. In order to convert the lost sales into sales, the retailer offers such customers an incentive, by charging them the price prevailing at the time of placing an order, instead of the current inflated price. Therefore, bearing in mind these facts, the present paper develops an inventory model for a retailer dealing with deteriorating and ameliorating items with exponential demand under the influence of inflation and time-value of money over a fixed planning horizon. Finally, a numerical example is provided to illustrate the proposed model. Comparative study of the optimal solutions with respect to major parameters under different special cases is carried out graphically and some managerial inferences have been presented. Key Words:Inventory,deteriorating, ameliorating, inflation, time-value of money, exponentialdemand, shortages, and partial backlogging.

  • ISSN: 23194847
  • Source Type: Journal
  • Original language: English

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