A Time Dependent Inventory Model for Exponential Demand Rate with Constant Production Where Shelf-Life of the Product Is Finite

Abstract

In this paper a time dependent inventory model is developed on the basis of constant production rate and market demands which are exponentially decreasing. It advances in quest of total aver-age optimum cost considering those products which have finite shelf-life. The model also consid-ers the small amount of decay. Without having any sort of backlogs, production starts. Reaching at the desired level of inventories, it stops production. After that due to demands along with the de-terioration of the items it initiates its depletion and after certain periods the inventory gets zero. The decay of the products is level dependent. The objective of this paper is to find out the optimum inventory cost and optimum time cycle. The model has also been justified with proving the convex property and by giving a numerical example.