Open AccessAn inventory system for varying decaying medicinal products in healthcare trade
Author(s) -
Kamal Kumar,
Neeraj Kumar,
M Meenu
Publication year - 2021
Publication title -
yugoslav journal of operations research/yugoslav journal of operations research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.221
H-Index - 21
eISSN - 2334-6043
pISSN - 0354-0243
DOI - 10.2298/yjor200125011k
Subject(s) - weibull distribution , sensitivity (control systems) , work (physics) , inflation (cosmology) , health care , computer science , econometrics , economics , operations research , statistics , mathematics , engineering , mechanical engineering , physics , electronic engineering , theoretical physics , economic growth
This paper introduces an inventory system for declining medicinal products under the effect of inflation with price-sensitive demand. Usually, pharmaceutical inventory systems assume the deteriorating rate as constant, which is insignificant and illogical because healthcare products medicines and drugs deteriorate significantly. Thus, the deteriorating rate of medicinal products is supposed to be time-dependent and to follow three-parameter Weibull distribution. The lack of commodities is permitted with the rate of partial backlogging. This research work develops a model to optimize the total average cost of the items by calculating the ordering quantity and the optimum time intervals. Finally, through a numerical example, with sensitivity analysis, we demonstrate the effect of different parameters.