Abstract
An inventory model for non-instantaneous deteriorating items with random start time of deterioration is investigated in this paper. For many products, the start time of deterioration cannot be predicted due to physical nature of the product. In this paper, products in the inventory system are considered to be deteriorated at a constant rate after a certain random time of inventory received by the retailer. Demand for the product is considered to be price sensitive. Two scenarios viz. with preservation technology investments and without preservation technology investments are compared to obtain retailer’s optimal policies which include optimal cycle time, preservation cost, and selling price. The objective is to maximize total profit of retailers with respect to cycle time, selling price, and preservation technology investments. The results indicate that use of preservation technology helps retailers to generate more profit.
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Authors thank DST-FIST file # MSI-097 for technical support to department of mathematics.
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Shah, N.H., Shah, P.H. (2021). Inventory Policies for Non-instantaneous Deteriorating Items with Random Start Time of Deterioration. In: Shah, N.H., Mittal, M., Cárdenas-Barrón, L.E. (eds) Decision Making in Inventory Management. Inventory Optimization. Springer, Singapore. https://doi.org/10.1007/978-981-16-1729-4_6
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DOI: https://doi.org/10.1007/978-981-16-1729-4_6
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