An Inventory Ordering Policies of Delayed Deteriorating Items with Ramp Type Demand, Price Discount and Complete Backlogging

Abstract

This study presents the inventory ordering policies of delayed/non- instantaneous deteriorating items with Ramp Type demand, Price discount and complete backlogging.  The premise of a price discount on the selling price for the proposed model acts as a motivator for both wholesalers and retailers, which in turn contributes to the notable increase in demand for the items put up for sale. The Ramp Type demand rate is very common when a brand of consumer goods is introduced to the market and then their demand increases linearly at first, before the market stabilizes and the demand becomes constant until the end of the inventory cycle. A suitable iterative procedure is used to solve the mathematical solutions in order to produce numerical examples on the applications of the model. Sensitivity analysis would be conducted to highlight the impact of changes in the model's solutions caused by minor changes in the system parameters. The suggested model is developed incorporating both pre and post deteriorating as well as discount on unit selling price under complete backlog, with analytical solutions provided.