Abstract

ORDERING POLICY FOR AMELIORATING INVENTORY WITH LINEAR DEMAND RATE AND UNCONSTRAINED RETAILER?S CAPITAL

Yahaya Ahmad, Dayyabu Hudu and Kabiru Mukhtar Adnan

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Abstract Items that incur a gradual increase in quality, quantity or both while in inventory are referred to as ameliorating items. Fruits, wine, high breed fishes in breeding yard (fish culture facility), fast growing animals like broiler, goose, rabbit etc. in farming yard provide good examples. When these items are stoked in the inventory or in the production centre, they undergo amelioration at some stages of their storage. This paper proposes a model that determines the optimal replenishment cycle time, such that the total variable cost is minimized.The amelioration rate and holding cost are constants, the demand rate throughout the cycle is linear time dependent, and shortages are not allowed. Numerical examples are provided to illustrate the application of the model developed. Keywords:Inventory, Amelioration, Ordering Policy, Linear demand rate, Unconstrained retailer?s capital

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