A discrete-in-time deteriorating inventory model with time-varying demand, variable deterioration rate and waiting-time-dependent partial backlogging

Abstract

A new inventory system is considered for deteriorating items in which unsatisfied demands are partially backlogged depending on the waiting time until the next replenishment and deterioration rates are constant, but different from period to period. Time is considered as a discrete variable, which better represents some real-life scenarios. An optimal solution can be easily derived. A sensitivity study is provided through substantial numerical experiments to illustrate the use and robustness of the proposed model. The sensitivity analysis reveals some useful and significant insights.

Keywords:

• deteriorating inventory
• time-varying demand
• variable deterioration rate
• partial backlogging