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Inventory Model for Timely Deteriorating Products Considering Penalty Cost and Shortage Cost


Author(s):

Aaditya S. Pevekar , V.J.T.I. Matunga, Mumbai; Prof M. R. Nagare, V.J.T.I. Matunga, Mumbai

Keywords:

Inventory, Deteriorating Products, Penalty Cost, Shortage Cost

Abstract:

In inventory the utility of deteriorating products decreases with time. There are many products which are deteriorates and obsolete as time passes and they lose their economical value which causes loss to the wholesaler / retailer. This loss may be considered as penalty cost. The main objective of our paper is to develop an EOQ model for deteriorating items which deteriorate after some time considering penalty cost and shortage cost with infinite production rate. The theoretical expression are obtained for optimum inventory level optimum cycle time.


Other Details:

Manuscript Id :IJSTEV2I2003
Published in :Volume : 2, Issue : 2
Publication Date: 01/09/2015
Page(s): 1-4
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