Analyzing EPQ Inventory Model With Comparison of Exponentially Increasing Demand and Verhult's Demand

Abstract

This research investigates the comparison of inventory management planning in Verhult's demand and exponentially increasing demand. The working process is different in both the cases coupling the parameters and points out the constraints for the optimal total cost in both the cases. This analysis shows that rate of deterioration and percentage of reworkable items is considered as decision variable in both (1) exponentially increasing demand and (2) Verhult's demand. While comparing, the total cost in Verhult's demand pattern is more profitable production process. A substantial numerical example is considered to investigate the effect of change in the total cost in both the demand function. A sensitivity analysis is developed to study the effect of changes in total cost.