AN ECONOMIC ORDER QUANTITY MODEL FOR DELAYED DETERIORATING ITEMS WITH LINEAR DEMAND RATE AND TWO STORAGE FACILITIES

Authors

  • Usman Lawal Department of Mathematics and Statistics, Faculty of Natural and Applied Sciences, Umaru Musa Yar’adua University, Katsina, Nigeria. Author
  • Murtala Sani Department of Mathematics and Statistics, Faculty of Natural and Applied Sciences, Umaru Musa Yar’adua University, Katsina, Nigeria. Author
  • Babangida Bature Department of Mathematics and Statistics, Faculty of Natural and Applied Sciences, Umaru Musa Yar’adua University, Katsina, Nigeria. Author

Keywords:

Two Storage Facilities, Linear Demand Rate, Delayed Deterioration, Economic Order Quantity

Abstract

Many inventory models are developed under the presumption that goods begin to deteriorate as soon as they arrive at the warehouse. However, some products, such as dried fruits, cereal grains, etc., have a shelf-life and begin to deteriorate after a period of time. This phenomenon is known as non-instantaneous or delayed deterioration. In addition, situations like price reductions, inexpensive storage, and high demand occur, and one may choose to acquire a large number of goods, creating a storage problem. One should hire a different warehouse to keep the excess inventory because one's own warehouse has a limited storage capacity. In this research, an economic order quantity model for delayed deteriorating items with linear demand and two storage facilities has been investigated. The demand before deterioration sets in is assumed to be time dependent linear demand rate and that after deterioration sets in is assumed to be constant. Shortages are allowed and are completely backlogged. The values of optimal time at which the inventory level reaches zero in OW and optimal cycle length and optimal ordering policy are determined so as to minimize the total variable cost. The optimal solutions' existence and uniqueness are provided with the necessary and sufficient conditions. For each case, various numerical examples are provided to illustrate how the models are applied. The managerial implications of the sensitivity analysis of specific model parameters on optimal solutions are then examined. In the discussions, recommendations are made for lowering the inventory system's total variable cost.

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Published

2023-08-01

How to Cite

AN ECONOMIC ORDER QUANTITY MODEL FOR DELAYED DETERIORATING ITEMS WITH LINEAR DEMAND RATE AND TWO STORAGE FACILITIES. (2023). The Journals of the Nigerian Association of Mathematical Physics, 65, 125 – 138. https://nampjournals.org.ng/index.php/home/article/view/41

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