Abstract

AN INVENTORY MODEL FOR NON-INSTANTANEOUS DETERIORATING ITEM WITH TWO-PHASE DEMAND RATES AND EXPONENTIAL BACKLOGGING

Y. Bello1 *& Y. M. Baraya2

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Abstract This work investigates an inventory model for non-instantaneous deteriorating items with two - phase demand rates and exponential backlogging. Most of the time, the demand rate of newly produced products such as plasma, satellite, fridge, stabilizer, mobile phone, computer and fashionable garments increase with time. The demand rate for such products is constant for some period of time and after that, when the items become popular in the market, the demand for the items increase due to the quality of the products. Shortages are allowed and exponentially backlogged for there could be a situation where an economic advantage may be gained by allowing shortages. The objective of the model is to find the optimal cycle length and order quantity that minimizes the total average cost. Newton-Raphson method has been used to find the optimal cycle length and order quantity which minimizes the total average cost. The result illustrated with numerical examples. Sensitivity analysis is performed to show the effect of changes in the parameters on the optimum solution. Keywords: Two?phase demand rate, non-instantaneous deterioration and exponential backlogging.

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