Open AccessLearning Effect on Inventory Model for Deteriorating and Ameliorating Items under Inflation and Partial Backlogging
Author(s) -
Biswaranjan Manda
Publication year - 2021
Language(s) - English
DOI - 10.47260/jcomod/1121
Subject(s) - stock (firearms) , economics , profit (economics) , incentive , order (exchange) , time horizon , economic shortage , time value of money , inflation (cosmology) , value (mathematics) , microeconomics , computer science , finance , mechanical engineering , linguistics , philosophy , physics , machine learning , government (linguistics) , theoretical physics , engineering
Now-a-days, learning’s awareness is increasing in various disciplines because effectof learning has a direct impact on profit or loss, and it is a promotional deemedeffective tool for inventory management. The basic concept of the inventory modelis that 100% of the articles in an ordered lot are of good quality but this concept isnot practically justifiable for the production process owing to product deteriorationand related factors and so deterioration of items cannot be ignored. Again due tolack of considering the influence of demand, the ameliorating items for the amountof inventory is increasing gradually and it is a natural phenomenon observing inmuch life stock models. In addition, as the deep financial crisis continues to hauntthe global economy, the effects of inflation and time value of money cannot beoblivious to an inventory system. Again another important factor is shortages whichno retailer would prefer, and in practice are partially backlogged and partially lost.In order to convert the lost sales into sales, the retailer offers such customers anincentive, by charging them the price prevailing at the time of placing an order,instead of the current inflated price. Therefore, bearing in mind these facts, thepresent paper develops an inventory model for a retailer dealing with deterioratingand ameliorating items with stock dependent demand under the influence ofinflation and time-value of money over a fixed planning horizon where holding costfollows the learning curve. Finally, a numerical example is provided to illustrate theproposed model. Comparative study of the optimal solutions with respect to majorparameters under different special cases is carried out graphically and somemanagerial inferences have been presented.Subject classification: AMS Classification No. 90B05.Keywords: Inventory, Learning effect, Deteriorating, Ameliorating, Inflation,Time-value of money, Shortages and Partial backlogging.