An Order Level Inventory Model for Perishable Items with Stock Dependent Demand and Partial Backlogging

This paper, present an optimization framework to derive optimal replenishment policy for perishable items with stock dependent demand rate. The demand rate is assumed to be a function of current level inventory and the inventory deteriorates per unit time with variable deterioration rate. These two parameter and third-parameter Weibull distribution functions are considered as variable deterioration rate. The shortages are allowed and partially backlogged with a variable rate, which depends on the duration of waiting time up to arrival of next lot.