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A Pharmaceutical Inventory Model for Variable Demand and Variable Holding Cost with Partially Backlogged Under Permissible Delay in Payments in Healthcare Industries

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Abstract

This paper presents a pharmaceutical inventory model for deteriorating items with quadratic demand and linear holding cost under permissible delay in payments. The pharmaceutical Inventory is discussed under two cases: (i) the permissible period is less than or equal to replenishment cycle (ii) the permissible period is greater than replenishment cycle. During the permissible period, both pharmaceutical company and the hospital got some benefits. Shortages are allowed and are partially backlogged. This model solved analytically by reducing the total inventory cost. The results are explained with numerical examples and sensitivity analysis.

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Acknowledgements

We would like to sincerely thank the Editor and two anonymous referees for their most valuable, constructive, innovative comments and suggestions that have encouraged the authors to make significant improvements in this paper. This research work is supported by Council of Scientific and Industrial Research, Government of India under the Scheme of CSIR Research Project with CSIR/No. 25(0218)/13/EMR-II/Dated 05.09.2013.

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Authors and Affiliations

  1. Department of Mathematics, The Gandhigram Rural Institute - Deemed University, Gandhigram, Tamilnadu, 624 302, India

    R. Uthayakumar & S. K. Karuppasamy

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  1. R. Uthayakumar
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  2. S. K. Karuppasamy
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Correspondence to S. K. Karuppasamy.

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Uthayakumar, R., Karuppasamy, S.K. A Pharmaceutical Inventory Model for Variable Demand and Variable Holding Cost with Partially Backlogged Under Permissible Delay in Payments in Healthcare Industries. Int. J. Appl. Comput. Math 3 (Suppl 1), 327–341 (2017). https://doi.org/10.1007/s40819-017-0358-9

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