An Optimal Policy for Deteriorating Items With Generalized Deterioration, Trapezoidal-Type Demand, and Shortages

Abstract

This paper focuses an optimal policy of an inventory model for deteriorating items with trapezoidal type demand rate and the three-parameter Weibull distribution deterioration rate. The model allows shortages which are completely backlogged in order to achieve better preserving amenity. The authors present some optimal solutions which leads to determine the total inventory cost in which the collective behavior of customers hinges on the waiting time. An easy-to-use optimization technique is included to find the shortage time point and order quantity to minimize the total system cost. Taking into account the above-mentioned assumptions, different kinds of numerical examples are considered to illustrate the theoretical behavior of the framed optimization model. The sensitivity analysis is made for this problem with variation of parameters. The study shows that the optimal solution not only exists but also is unique and is less expensive to operate if the factors of three-phase variation, representing the growth, the steady, and the decline phases of demand with respect to time are considered.