Kousar Jaha Begum
K. Srinivasa Rao
M. Vivekanada Murty
K. Nirupama Devi
Abstract
In this paper we develop and analyse an inventory modelfor deteriorating items with the assumption that thelifetime of the commodity is random and follows a Generalized Pareto distribution.Here it is assumed that the demand rate is known and constantand the rate ofreplenishment is finite. It is also further assumed that shortages are allowed and fully back logged. Using the differential equations, the instantaneous state of inventory is obtained. With suitable cost consideration, the total cost function is derived,By minimizing the total costfunction, the optimal ordering quantity and optimal duration of replenishment, optimal timefor starting the replenishment are obtained. Sensitivity analysis of the model is also carried with a numerical illustration. This model is also includes several ofthe earlier models asparticular cases for specific values ofparameters.
Keywords- Deteriorating items, lifetime, generalized Pareto distribution,optimal ordering and pricing policies.