An EOQ model for deteriorating item with backorder and time dependent exponential demand

Prokash Mondal, Sriparna Chowdhury, Pritha Das, Sanat Kumar Majumder and Kajal De

International Journal of Mathematics in Operational Research, 2024, vol. 29, issue 3, 291-308

Abstract: In this article, we have developed an economic order quantity (EOQ) model over a finite time horizon for an item with time dependent demand rate with a constant rate of deterioration in consideration of shortages (SFI policy) in inventory under permissible delay in payments and partial backlogging. The demand rate considers hare exponential to address the increment of demand, which greatly impacts the introduction of a new product in the market. Also, the backlogging rate is considered dependent on the hanging time duration of the customers instead of waiting in line of the customers. The model is solved analytically to obtain the optimal solution to the problem. It is then illustrated with the help of numerical examples. A sensitivity analysis of the optimal solution concerning the parameters of the inventory system is given.

Keywords: inventory; economic order quantity; EOQ; deterioration; delay in payment; trade credit; backorder dependent. (search for similar items in EconPapers)
Date: 2024
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