On Optimal Inventory Model for Obsolescence Perishable Products under Unpermitted-Stockout
With the advancement of science and technology and the fast change of buyer requirements, the short-life products have been shortened at large, some formerly long-life products gradually turn to value deterioration products. The ratio of value deterioration products to modern products is getting higher and higher. This paper develops a deterministic economic order quantity EOQ inventory model, where the demand rate depends on the on-hand inventory when inventory level exceeds certain quantity , otherwise the demand rate is constant. The effects of obsolescence are taken into account, for it is related to the demand rate. The results are discussed through two numerical examples. A sensitivity analysis of the optimal solution with respect to parameters of the system is carried out.
Daoguo Yang, Tianlong Gu, Huaiying Zhou, Jianmin Zeng and Zhengyi Jiang
X. L. Xie "On Optimal Inventory Model for Obsolescence Perishable Products under Unpermitted-Stockout", Advanced Materials Research, Vols. 201-203, pp. 1292-1295, 2011