“Modeling For Inventory with Exponential Declining Demand, Variable Deterioration, Linear Holding Cost and Inflation without Shortages”

Abstract

In this paper, an inventory model with exponential declining demand and variable deterioration is to be optimized. The holding cost is a linear function of time. Shortages are not allowed. The items like grocery products, mobile phones, computer chips etc. are considered as deteriorating items as they have fixed life which decreases with time. A numerical example has been illustrated using MATLAB to describe the model and the sensitivity analysis of various parameters is carried out with graphical and tabular data.