An Optimal Policy with Three-Parameter Weibull Distribution Deterioration, Quadratic Demand, and Salvage Value Under Partial Backlogging

Abstract

This paper deals with an EOQ (Economic Order Quantity) model for deteriorating items having the following characteristics: 1) Deteriorating items follow a three-parameter Weibull distribution deterioration rate; 2) Shortages are allowed and are partially backlogged; 3) Salvage value of items is incorporated; 4) Demand is deterministic and a time-dependent quadratic function of time. The principal objective of the introduced model is to minimize the average total inventory cost by finding an optimal replenishment policy. The effectiveness of the model is validated with a numerical example and the sensitivity analysis of the optimal solutions to changes in the values of the various parameters associated with the model has been performed.