International Journal of Applied Science and Engineering Research
  • Year: 2016
  • Volume: 5
  • Issue: 1

Optimal ordering policies for deteriorating items with controllable deterioration rate and time dependent quadratic demand

1GITAM School of International Business, GITAM University, Visakhapatnam – 530 045, India. Email: rangavajhala_v@yahoo.co.in

2BVSR Engineering College, Chimakurthy-523 226

*Corresponding author e-mail: rangavajhala_v@yahoo.co.in

Online published on 27 April, 2016.

Abstract

This paper presents a deterministic inventory model for deteriorating items when the deterioration rate is controllable using preservation technology and the demand rate is a quadratic function of time. The optimal cost of the system is calculated allowing shortages. Further it is assumed that the holding cost is a linear function of time. A numerical example is given and the robustness of the model is tested through sensitive analysis.

Keywords

Quadratic demand, deterioration, preservation technology, EOQ, variable holding cost