An Inventory Model for Perishable Goods with Controllable Deterioration, Partially Backlogged Shortage and Advanced Payment

Anima Bag¹ , Rojalini Patro²

1. Department of Statistics, Faculty, Rama Devi Women’s University, Bhubaneswar, India.
2. Department of Mathematics, Faculty, K L Deemed to be University, Vijayawada, India.

Section:Research Paper, Product Type: Journal-Paper
Vol.10 , Issue.5 , pp.1-6, Oct-2023

Online published on Oct 31, 2023

Copyright © Anima Bag, Rojalini Patro . This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
 

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Abstract :
The purpose of the paper is to develop an optimal strategy for the inventory system for perishable goods. Discount facility is adopted here for advanced payment. Demand is partially backlogged. Preservation technology is applied in the proposed model to reduce the rate of deterioration. An inventory model has been developed and the optimum order quantity as well as the time at which shortage occurs are determined which maximizes the total profit. To observe the practical utility of the proposed model, three numerical illustrations are provided which are solved by Mathematica 5.1 software. Concavity of the average profit is examined graphically. Finally a post optimality analysis is performed to show the effects of inventory parameters on optimal policy. The proposed model can be used for decaying items like fruits, vegetables, food grains and medicines that are subject to preservation technology to maximize the total profit.

Key-Words / Index Term :
Inventory, Decaying Items, Preservation Technology, Partial Backlogging, Advance Payment

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