A Markovian inventory integrated policy with inter-demand time as exponential distribution is considered in this paper. This paper presents, a single-vendor and multiple-buyers integrated inventory model for deteriorating items. The model contains the exponential parameter which is unknown and is estimated through MLE and Baye's under a squared error loss function. The conjugate Gamma prior is used as the prior distribution of exponential distribution. Finally, a numerical MCMC simulation is used to compare the estimators obtained with Expected risk and are shown graphically. The proposed model is formulated and the optimal decisions are obtained by minimising the average total cost of the integrated system. A numerical example is taken to illustrate the developed model. The sensitivity analysis is also carried out for the model with percentage change in the parameters.
Bayesian Estimation, Deterioration, Integrated Inventory policy, Single-vendor and Multiple buyers, Stochastic demand
