An Inventory Model for Items with Two Parameter Weibull Distribution Deterioration and Backlogging

Abstract

In this paper an inventory model is developed with time dependent power pattern demand and shortages due to deterio-ration and demand. The deterioration is assumed to follow a two parameter Weibull distribution. Three different cases with complete, partial, no backlogging are considered. The optimal analytical solution of the model is derived. Suit-able numerical example has been discussed to understand the problem. Further sensitivity analysis of the decision variables has been done to examine the effect of changes in the values of the parameters on the optimal inventory policy.