Replenishment Schedule for Deteriorating Items with Time-Proportional Demand

Abstract

In this paper a heuristic model is presented for determining the ordering schedule when an inventoried item is subject to deterioration and demand changes linearly over time. While the optimizing model developed by researchers fixes the ordering interval and varies the ordering size, the heuristic permits variation in both replenishment-cycle length and the size of the order. As a result, the heuristic produces a better solution than optimizing models in the study presented here.

Keywords:

• deterioration
• heuristics
• inventory
• time-porportional demand