An Inventory Model for Deteriorating Items With Exponential Declining demand, Time-Varying Holding Cost and Shortage
Fadli Azis(a*), Sudradjat Supian(b), Eman Lesmana(b)
a) Magister of Mathematical and Natural Science Padjadjaran University
* fadliazis16[at]gmail.com
b) Department of Mathematical and Science Padjadjaran University
Abstract
In this paper proposes an EOQ mathematical model for deteriorating items during the inventory process. The model is developed with exponentially decreasing demand, constant deterioration, and allowing for shortages. The time-varying holding cost is a linear function of time. The ordering cost, the holding cost, the deteriorating cost, and the shortage cost are considered in the inventory management. A numerical example is presented to illustrate the model and the sesitivity analysis of various parameters is carried out.
Keywords: Inventory, EOQ, deterioration, exponential declining demand, shortage
Topic: Applied Mathematics