Open AccessAnalysis of an inventory model with both the time dependent holding and sales revenue cost
Author(s) -
A K Malik,
Priya Mathur,
Satish Kumar
Publication year - 2019
Publication title -
iop conference series. materials science and engineering
Language(s) - English
Resource type - Journals
eISSN - 1757-899X
pISSN - 1757-8981
DOI - 10.1088/1757-899x/594/1/012043
Subject(s) - revenue , profit (economics) , profit model , total revenue , holding cost , sensitivity (control systems) , operations research , economics , function (biology) , microeconomics , econometrics , mathematical optimization , operations management , mathematics , engineering , finance , electronic engineering , evolutionary biology , biology
The research paper explores the possibility of long-life products on inventory model with variable demand rate. We established a new scheme for maximum life time product; their deterioration rate is considered as a function of maximum life time. The main conception behind the planned model is: time dependent both holding and sales revenue cost for finding the optimal total profit with the optimal cycle. Finally, numerical example and sensitivity analysis demonstrate that the proposed mathematical model result and realize the effect of variation in optimal profit function with respect to several parameters used.