Proceedings of 23rd International Business Research Conference
18 - 20 November, 2013, Marriott Hotel, Melbourne, Australia, ISBN: 978-1-922069-36-8
Optimal Ordering Policy for Deteriorating Items with Learning
Effect under Inflationary Environment
Chandra Prakash, Mukesh Kumar Barua and Rajesh Katiyar
In this paper an inventory model is constructed for
perishable items which are deteriorating by a Weibull
distribution under the inflationary effect with learning
effect. Generally demand of the products depends on
the sale price so the selling price of the commodity has
been taken to determine the demand, and considered
the rate of demand is price dependent. The inventory
holding cost of items is assumed in a linear pattern,
which is the function of time. In today’s dynamic
environment the effect of inflation and the time value of
money is needed to be considered for inventory
decisions. This model allows shortage in inventory and it
is completely backlogged. The solution of the model
numerically and sensitivity analysis has been performed
to evaluate the effect on the model to determine the
optimal policy of inventory.
Keywords: Inventory, Economic Order Quantity, Shortage,
Demand, Holding Cost, Inflation, Learning, Weibull distribution.
Price Dependent
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Chandra Prakash, Research Scholar, Department of Management Studies, Indian Institute of
Technology, Roorkee, Uttarakhand – 247667, E-mail: cpgarg86@gmail.com
Mukesh Kumar Barua, Assistant Professor, Department of Management Studies, Indian Institute of
Technology, Roorkee, Uttarakhand – 247667, E-mail: barua71@gmail.com
Rajesh Katiyar, Research Scholar, Department of Management Studies, Indian Institute of Technology,
Roorkee, Uttarakhand – 247667, E-mail: rajesh_katiyar21@yahoo.co.in