(A) schedulling period order level inventory model for exponentially deteriorating items

Abstract

In this study, inventory models are considered in which inventory is depleted not only by demand but also be deterioration. A probabilistic order level model with stochastic demand for exponentially deteriorating items is developed in the case of back-orders and lost-sales. An order level model with deterministic and constant demand is developed for exponentially deteriorating items in which the demand pattern follows power pattern. A probabilistic schedulling period model with stochastic demand is developed for nondeteriorating and exponentially deteriorating items in which the demand pattern follows power pattern. A case problem for each model is solved either by exact formula or numerical solution procedure to show the effect of the parameter on the optimal solutions.