Inventory Analysis of Decaying Stock Under Demand Influenced by Supply and Time-Variable Storage Cost

Abstract

In this study we have considered an economic order quantity model (EOQ) for deteriorating items under varying holding cost by assuming that the demand rate is stock dependent. In this paper we have considered time varying holding cost is linear function of time and shortage are not allowed. Products such as food grains, clothing and electronic devices have limited life span which diminishes as the season comes to a close.  This chapter deals with the demand increases with the available inventory level, reflecting consumer behavior patterns commonly seen in retail and marketing contexts. Optimal solution is obtained with the help of differential calculus and optimality condition. The model is validating the optimal solution through sensitivity analysis and Numerical examples. It is also shown that the total cost function is convex. Informed decision-making approaches for inventory system facing real life complexities.