An inventory planning problem for time-varying linear demand and parabolic holding cost with salvage value

Abstract

In this manuscript, a model is proposed for the inventory planning problem with items which deteriorate linearly with respect to time. The concept of salvage value for deteriorated items is considered and incorporated in this model. The solution procedure of proposed optimization model is illustrated by a couple of numerical examples. A convexity check of the average total cost function is performed by plotting a two dimensional graph. The sensitivity test of the proposed model is performed to study the eect of changing the least as well as the most sensitive parameters in the proposed optimization model. Some graphical representations are constructed to discuss the outcomes and results so obtained for a choice of various parameters.