An Integrated Inventory Model with Exponential Amelioration and Two Parameter Weibull Deterioration

Abstract

Most of the works on classical inventory models are based on the assumptions that the utility of inventory items remains constant over time. In this paper, an integrated inventory model from the perspectives to solve the upbringing of the livestock and sales decision problem of the livestock or their by products by incorporating two opposite physical characteristics,  namely amelioration of the livestock and deterioration of them in terms of their food cost and their treatment when they are ill into inventory model. Time-varying demand patterns are commonly used to reflect sales in different phases of a product life cycle in the market. For example, the demand for inventory items increases over time in the growth phase and decreases in the decline phase. Many researches are done on inventory with constant demand rate, time varying demand patterns but very few of the researchers have considered the demand of the items as power demand pattern. In this paper, an inventory model with exponential amelioration, two parameter Weibull deterioration, time-dependent holding cost and power demand patterns is analysed. Shortages are allowed to occur. The derived model is illustrated by a numerical example and its sensitivity analysis is carried out.