INVENTORY MODEL FOR IMPERFECT QUALITY ITEMS UNDERDIFFERENT DETERIORATION RATES AND SHORTAGES CONSIDERING PRICE AND TIME DEPENDENT DEMAND WITHINLFATION AND PERMISSIBLE DELAY IN PAYMENTS
Keywords:
Inventory model, Varying Deterioration, Time dependent demand, Price dependent demand, Defective items, Shortages, Inflation, Permissible delayAbstract
Some of the assumptions of the classical inventory models are not fulfilled with current
situations. One of the assumptions is that the items received in a lot are all perfect items. Many
times it happens that items received in a lot are not of 100% good quality. Some of the items are
of defective quality in the lot received. Another assumption is that as soon as items are received,
payments are made. In today’s reality situation, the supplier allows certain fixed period known as
permissible delay for payment to the retailer for settling the amount of items received. Keeping
this reality, a deterministic inventory model with imperfect quality items is developed when
deterioration rate is different during a cycle. Here it is assumed that demand is a function of time
and price. Shortages are allowed and completely backlogged. Numerical example is taken to
support the model. Sensitivity analysis is also carried out for parameters.
