Optimal Inventory Policy for Deteriorating Item under Stock Level Dependent Demand, Controllable Deterioration, Trade Credit and Complete Backlogging
DOI:
https://doi.org/10.62054/ijdm/0202.17Abstract
This study examines the inventory management problem for deteriorating item with stock level dependent demand and controllable deterioration under trade credit and complete backlogging and derived the objective function which is the total average cost function and minimized it. We applied the optimization problem solver in MATLAB to solve the derived objective function. From the numerical illustrations and sensitivity analysis, it is observed that the optimal total average cost and the optimal order quantity are sensitive to the initial demand rate, stock level and the reduced deteriorating rate parameters.
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