Inventory management under stochastic conditions with multiple objectives

Since 1975, a series of related papers appeared that considered the effects of time value of money and inflation on the inventory system. There are a few problems in the inflationary inventory systems on obsolescence and amelioration items which have been addressed by the researchers, because, we will not use obsolesced items in the future and the amelioration products are limited in the real world. For example, Moon et al. [1] considered ameliorating/deteriorating items with a time-varying demand pattern. Another research for ameliorating items has been done by Sana [2].

The no obsolescing, deteriorating and ameliorating items have been considered in some researches on the inflationary inventory system. Misra [3] developed a discounted cost model and included internal (company) and external (general economy) inflation rates for various costs associated with an inventory system. Sarker and Pan [4] surveyed the effects of inflation and the time value of money on order quantity with finite replenishment rate. Some efforts were extended the previous works to consider more complex and realistic assumption, such as Uthayakumar and Geetha [5], Maity [6], Vrat and Padmanabhan [7], Datta and Pal [8], Hariga [9], Hariga and Ben-Daya [10] and Chung [11].

The deteriorating inventory systems have been studied considerably in the recent years. For example, Chung and Tsai [12] presented an inventory model for deteriorating items with the demand of linear trend considering the time-value of money. Wee and Law [13] derived a deteriorating inventory model under inflationary conditions when the demand rate is a linear decreasing function of the selling price. Chen and Lin [14] discussed an inventory model for deteriorating items with a normally distributed shelf life, continuous time-varying demand, and shortages under an inflationary and time discounting environment. Yang [15] discussed the two-warehouse inventory problem for deteriorating items with a constant demand rate and shortages. Chang [16] established a deteriorating EOQ model when the supplier offers a permissible delay to the purchaser if the order quantity is greater than or equal to a predetermined quantity.

For full text: click here

(Author: A. Mirzazadeh

Published by Sciedu Press)