Kousar Jaha Begum
K. Srinivasa Rao
M. Vivekanada Murty
K. Nirupama Devi
Abstract
Inthis paper we develop and analyse an inventory modelfor deteriorating items with the assumption that the lifetime ofthe commodity is random and follows a GeneralizedPareto distribution. Here it is assumed that the demand rate is known and constant and the rate of replenishment isfinite. It is also further assumed thatshortages are allowed andfully back logged. Using the differential equations, the instantaneous state ofinventory is obtained. With suitable cost consideration, the total costfunction is derived,By minimizing the total cost function, the optimal ordering quantity and optimal duration of replenishment, optimal time for starting the replenishment are obtained. Sensitivity analysis of the model is also carried with a numerical illustration. This model is also includes several of the earlier models as particular cases for specific values ofparameters.
Keywords- Deteriorating items, lifetime, generalized Pareto distribution, optimal ordering and pricing policies. AMS Subject Classification (2000): Primary 90B05