Article: An EOQ model for deteriorating item with backorder and time dependent exponential demand Journal: International Journal of Mathematics in Operational Research (IJMOR) 2024 Vol.29 No.3 pp.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. Inderscience Publishers - linking academia, business and industry through research

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

Authors: Prokash Mondal; Sriparna Chowdhury; Pritha Das; Sanat Kumar Majumder; Kajal De

Addresses: Department of Mathematics, Indian Institute of Engineering Science and Technology, Shibpur, Howrah – 711103, West Bengal, India ' Department of Mathematics, Indian Institute of Engineering Science and Technology, Shibpur, Howrah – 711103, West Bengal, India ' Department of Mathematics, Indian Institute of Engineering Science and Technology, Shibpur, Howrah – 711103, West Bengal, India ' Department of Mathematics, Indian Institute of Engineering Science and Technology, Shibpur, Howrah – 711103, West Bengal, India ' School of Science, Netaji Subhas Open University, West Bengal – 700091, India

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.

DOI: 10.1504/IJMOR.2024.142446

International Journal of Mathematics in Operational Research, 2024 Vol.29 No.3, pp.291 - 308

Received: 01 Jul 2022
Accepted: 05 Jul 2022
Published online: 31 Oct 2024 *

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

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