CFP last date
20 January 2025
Call for Paper
February Edition
IJCA solicits high quality original research papers for the upcoming February edition of the journal. The last date of research paper submission is 20 January 2025

Submit your paper
Know more
The week's pick
Responsive image
SFLA-Based Line Balancing and Task Optimization in Master-Slave Controlled Hanger Transportation Systems for Garment Production

Duc Hoang Nguyen
Random Articles
Reseach Article

An Economic Order Quantity Model for Items Having Linear Demand under Inflation and Permissible Delay

by Sarbjit Singh
journal cover thumbnail

International Journal of Computer Applications
Foundation of Computer Science (FCS), NY, USA
Volume 33 - Number 9
Year of Publication: 2011
Authors: Sarbjit Singh
10.5120/4052-5575

Sarbjit Singh . An Economic Order Quantity Model for Items Having Linear Demand under Inflation and Permissible Delay. International Journal of Computer Applications. 33, 9 ( November 2011), 48-55. DOI=10.5120/4052-5575

@article{ 10.5120/4052-5575,
author = { Sarbjit Singh },
title = { An Economic Order Quantity Model for Items Having Linear Demand under Inflation and Permissible Delay },
journal = { International Journal of Computer Applications },
issue_date = { November 2011 },
volume = { 33 },
number = { 9 },
month = { November },
year = { 2011 },
issn = { 0975-8887 },
pages = { 48-55 },
numpages = {9},
url = { https://ijcaonline.org/archives/volume33/number9/4141-5575/ },
doi = { 10.5120/4052-5575 },
publisher = {Foundation of Computer Science (FCS), NY, USA},
address = {New York, USA}
}
%0 Journal Article
%1 2024-02-06T20:19:48.040891+05:30
%A Sarbjit Singh
%T An Economic Order Quantity Model for Items Having Linear Demand under Inflation and Permissible Delay
%J International Journal of Computer Applications
%@ 0975-8887
%V 33
%N 9
%P 48-55
%D 2011
%I Foundation of Computer Science (FCS), NY, USA
Abstract

This study considers deteriorating items having linear demand pattern, although this demand pattern is not new and lot of work has been done on this demand pattern. But this study is unique in itself, as in this study constant part of linear demand changes with each cycle, thus it gives better picture of demand then earlier models. The earlier models used to consider the constant factor of linear demand pattern as constant for the whole year which is an absurd. In this paper, the effect of permissible delay in payments is also considered, which is usual practice in most of the business i.e. purchasers are allowed a period to pay back for the goods brought without paying any interest. To make it more suitable to the present environment the effect of inflation and time value of money is also considered. As, the product considered in this paper are perishable product, hence shortages are allowed and are fully backlogged. The effect of inflation and time value of money are also taken into account. Numerical illustrations are also incorporated to show, the effect of changing constant part of linear demand after each cycle.

References
  1. Aggarwal, S.P., & Jaggi, C.K. 1995. Ordering policies of deteriorating items under permissible delay in payments. Journal of the Operational Research Society. 49, 658-662.
  2. Balki, Z.T., & Benkherouf, L. 1996. On the optimal replenishment schedule for an inventory system with deteriorating items with time varying demand and production rates. Computers & Industrial Engineering, 30, 823-29.
  3. Bhunia, A.K., Maiti. M. 1998. A two-warehouse inventory model for deteriorating items with linear trend in demand and shortages. Journal of the Operational Research Society. 49(3), 287-292.
  4. Bierman., & Thomas. 1977. Inventory decisions under inflationary condition. Decision Sciences. 8(7), 151-155.
  5. Bose, S., Goswami, A., Chaudhari, A., & Chaudhari, K.S. 1995. An EOQ model for deteriorating items with linear time-dependent demand rate and shortages under inflation and time discounting. Journal of Operational Research Society. 46, 771-782.
  6. Buzacott.1975. EOQ with inflation for deteriorating items. Operational Research Quarterly.26 (3), 553-558
  7. Chakrabarti, T., & Chaudhari , K.S. 1997. An EOQ model for deteriorating items with a linear demand and shortages in all cycles. International Journal of production Economics. 49(3), 205-213.
  8. Chung K.J. 1998. A theorem on the determination of economic order quantity under conditions of permissible delay in payments. Computers & Operations Research. 25(1), 49-52.
  9. Chung K.J. & Huang Y.F. (2004). Optimal replenishment policies for EOQ inventory model with limited storage capacity under permissible delay in payment Journal of Operational Research Society. 14, 17-22.
  10. Chung, K.S., & Tsai, S.F. 1997. An algorithm to determine the EOQ for deteriorating items with shortage and a linear trend in demand, International Journal of Production Economics, 51(3), 215-221.
  11. Dave, U. 1989. On a heuristic inventory-replenishment rule for items with a linearly increasing demand incorporating shortages. Journal of the Operational Research Society. 38(5), 459-463.
  12. Datta, T.K., & Pal, A.K. 1991. Effects of inflation time value of money on an inventory model with linear time dependent demand rate and shortages. European Journal of Operations Research. 52, 1-8
  13. Donaldson W.A. 1977. Inventory replenishment policy for a linear trend in demand-an analytical solution. Operational Research Quarterly, 28,663-670
  14. Goswami, A. and Chaudhri, K.S. 1991 An EOQ model for deteriorating items with a linear trend in demand. Journal of Operational Research Society. 42(12), 1105-1110
  15. Ghare & Schrader. 1963. A model for exponential decaying inventory. Journal of Industrial Engineering .14(3), 238-43
  16. Goyal, S., Kusy, M., & Soni, R. 1986. A note on the economic replenishment interval of an item with a linear trend in demand. Engineering Costs & Production Economics. 10(3), 253-255.
  17. Goyal, S.K. 1986. On improving replenishment policies for linear trend in demand. Engineering Costs & Production Economics. 10(1), 73-76.
  18. Goyal S. K. 1985. Economic order quantity under conditions of permissible delay in payments. Journal of the Operational Research Society. 36 (3), 335-38.
  19. Hariga, M. and Goyal, S.K. 1995. An alternative procedure for determining the optimal policy for an inventory item having linear trend in demand, Journal of Operational Research Society. 46(4), 521-527.
  20. Hariga, M. 1997. Optimal inventory policies for perishable items with time dependent demand. International Journal of Production Economics. 50(1), 35-41
  21. Hariga, M. 1993. The inventory replenishment problem with a linear trend in demand. Computer & Industrial Engineering. 24(2), 143-150
  22. Kar, S., Bhunia, A.K, Maiti, M. 2001. Deterministic inventory model with two levels of storage, a linear trend in demand and a fixed time horizon. Computers and Operation Research. 28, 1315-1331
  23. Khanra, S. & Chaudhuri, K.S. 2003. A note on an order-level inventory model for a deteriorating item with time dependent quadratic demand. Computers and Operations Research,2003, 30, 1901-1916
  24. Khouja, M., & Mehrez, A. 1996. Optimal inventory policy under different supplier credits. Journal of Manufacturing Systems. 15, 334-339
  25. Lo, W.Y., Tsai, C.H., & Li, R. K., 2002. Exact solution of inventory replenishment policy for a linear trend in demand- two equation model. International journal of Production Economics, 76(2), 111-120.
  26. Misra R.B. 1979. A study of inflation effects on inventory system. Logistics Spectrum .9(3), 260-268
  27. Moon, I., Giri, B.C., & Ko, B. 2005. Economic order quantity models for ameliorating/deteriorating items under inflation and time discounting. European Journal of Operational Research.162 (3), 773-785.
  28. Rau, H., & Ouyang, B.C. 2007. A general and optimal approach for three inventory models with a linear trend in demand. Computers and Industrial Engineering, 52(4), 521-532.
  29. Ray, J. & Chaudhari, K.S. 1997. An EOQ model with stock-dependent demand, shortage, inflation and time discounting. International Journal of production economics.53, 171-180.
  30. Ritchie, E. 1980. Practical inventory replenishment policies for a linear trend in demand followed by a period of steady demand. Journal of Operational Research Society.31, 605-613.
  31. Sarkar, B.R., Jamal, A.M.M., & Wang S. 2000. Supply chain models for perishable products under inflation and permissible delay in payment. Computers and Operation Research. 27, 59-75.
  32. Shah, Y.K. 1977. An order level lot size inventory for deteriorating items. AIIE Transactions. 9(2),108-112
  33. Silver, E.A., & Meal, H.C. 1969. A simple modification of the EOQ for the case of varying demand rate. Production & Inventory Management.10 (4), 52-65.
  34. Silver, E.A. 1979. A simple inventory replenishment decision rule for a linear trend in demand. Journal of Operational Research Society. 30, 71-75.
  35. Teng, J. T. 2002. On the economic order quantity under conditions of permissible delay in payment. Journal of the Operational Research Society. 53, 915.918.
  36. Teng, Chang & Goyal, S.K. (2005), Optimal Pricing and ordering policy under permissible delay in payment International Journal of Production Economics. 97, 121-129
  37. Teng, J.T. 1996. A deterministic inventory replenishment model with a linear trend in demand. Operations Research Letters.19 (1), 33-41.
  38. Teng, J.T., Ouyang, Y.L., & Chang, C.T. 2005. Deterministic economic production models with time varying demand and cost. Applied Mathematical Modeling, 29(10), 987-1003.
  39. Wee, H.A. 1995. A deterministic lot-size inventory model for deteriorating items with shortage and a declining market. Computers & Operations Research. 22(3), 345-356.
  40. Zhou, W.Y., & Lau, H.S.2000. An economic lot size model for deteriorating items with lot size dependent replenishment cost and time varying demand. Applied Mathematical Modeling. 24(10), 121-139.
Index Terms

Computer Science
Information Sciences

Keywords

Deterioration Linear demand pattern Permissible delay Inflation Time value of money Allowable shortages

Powered by PhDFocusTM