ECONOMIC ORDER QUANTITY POLICIES For DETERIORATING ITEMS WITH VARIOUS DEMANDS AND COSTS

Abstract

For the inventory models, the optimal replenishment policy usually depends on the set up newlinecost, holding cost, the back order cost and the demand pattern. The classical approach in newlinedeterministic inventory modeling is to assume a uniform demand rate. Much work has been newlinecarried out to extend the Economic Order Quantity (EOQ) model in order to accommodate timevarying demand patterns. This thesis proposes EOQ models for deteriorating items with timedependent demands, time proportional deteriorations and partial backlogging scenarios. newlineGenerally, the inventory models are constructed in order to keep stored items for an infinite newlineperiod of time without losing their values. Most of the physical items experience some sort of newlinedeterioration over time. The effect of the deterioration can be neglected for such items having the newlinelow deterioration rate whereas the items like vegetables, fruits, food items, alcohol, drugs, newlinephotographic films and the radio-active substances experience the significant rate of newlinedeterioration. Therefore the effect of the deterioration must be taken into account while newlinedeveloping the inventory models. The objective of the research is to obtain the optimal order newlinequantity for a single deteriorating item by minimizing the expected overall cost over the planning newlinehorizon. The thesis is divided into seven chapters. newline