The Inventory Control Model for Deteriorating Items with Hybrid Type Demand under the Inflationary Environment

Abstract

The current research work presents inventory model for deteriorating items and demand function is dependent on stock levels and selling price of the items. To reduce impact of deterioration, a customized preservation technology is unified in the present work. This study generally investigate the impact of inflation on inventory system, with a focus on optimizing ordering quantities and replenishment cycles to reduce total cost under different payment conditions. The main factors of this research is to analysis of delay in payment and partially advance payments, taking into account the complications of stock-dependent and, inventory level shortages, price-dependent demand function and partial backlogging of deteriorating items. This research article scrupulously calculates the effect of inflation, advanced payments policies and delay in payment on total cost incurred by retailer trader. To validate efficacy of this mathematical model, numerical examples, sensitivity analysis part solved, and graphical part show the optimality of this model using the mathematica software7.0.