Inventory Optimization with Stock-Level Dependent Demand, Shortages and Variable Holding Cost

Sandeep Kumar¹

Section:Review Paper, Product Type: Isroset-Journal
Vol.5 , Issue.4 , pp.425-429, Aug-2018

CrossRef-DOI:   https://doi.org/10.26438/ijsrmss/v5i4.425429

Online published on Aug 31, 2018

Copyright © Sandeep Kumar . 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 :
In the present study the optimal order quantity and the time of optimal cycle of an inventory model are determined .Here the rate of demand depends on the stock. The holding cost per unit of the item per unit time is taken to be linear function of the quantity in storage. Here, it also considered that the shortages in stock are allowed. In traditional inventory models, the rate of demand and holding cost are considered to be constant. There are so many inventory models, where the holding cost was taken to be constant for the whole inventory cycle without shortages. But here the holding cost is considered as a variable which is an increasing step function of the time due to storage. This study provides the basis for further extensions like the incorporation of deteriorating items, shortage cost and stochastic lead time in order to develop more complex and realistic inventory models.

Key-Words / Index Term :
Inventory, Demand, Stock, Costs, Storage.

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