scholarly journals Inventory models for production systems with constant/linear demand, time value of money, and perishable/non-perishable items

2006 ◽  
Author(s):  
Karen N. Oganezov
Keyword(s):  
Production Systems ◽  
Inventory Models ◽  
Perishable Items ◽  
Time Value Of Money ◽  
Time Value ◽  
Linear Demand ◽  
Value Of Money

IMPERFECT PRODUCTION SYSTEMS WITH IMPERFECT PREVENTIVE MAINTENANCE, INFLATION, AND TIME VALUE OF MONEY

2006 ◽  
Vol 23 (01) ◽  
pp. 89-105 ◽  
Author(s):  
M. A. DARWISH
Keyword(s):  
Preventive Maintenance ◽  
Production Systems ◽  
Production Quality ◽  
General Distribution ◽  
Time Value Of Money ◽  
Time Value ◽  
Proposed Model ◽  
And Shifts ◽  
Value Of Money ◽  
Control State

A model that integrates the issues of production, quality, maintenance, inspection, inflation, and time value of money is proposed in this paper. It is assumed that the production system starts in the in-control state producing items of high or perfect quality. However, the process may deteriorate with time and shifts at a random point in time to an out-of-control state and begins to produce non-conforming items. The elapsed time for the process to shift to the out-of-control state is assumed to follow a general distribution. Imperfect preventive maintenance, restoration, and inspection errors are taken into account. Also, inflation, time value of money, and shortage are considered in the proposed model. Numerical examples are presented to illustrate important aspects of the integrated model.

scholarly journals A Partial Backlogging Inventory Model for Deteriorating Item under Fuzzy Inflation and Discounting over Random Planning Horizon: A Fuzzy Genetic Algorithm Approach

2013 ◽  
Vol 2013 ◽  
pp. 1-13 ◽  
Author(s):  
Dipak Kumar Jana ◽  
Barun Das ◽  
Tapan Kumar Roy
Keyword(s):  
Genetic Algorithm ◽  
Planning Horizon ◽  
Inventory Model ◽  
Expected Profit ◽  
Partial Backlogging ◽  
Inventory Models ◽  
Time Value Of Money ◽  
Time Value ◽  
Value Of Money ◽  
Random Planning Horizon

An inventory model for deteriorating item is considered in a random planning horizon under inflation and time value money. The model is described in two different environments: random and fuzzy random. The proposed model allows stock-dependent consumption rate and shortages with partial backlogging. In the fuzzy stochastic model, possibility chance constraints are used for defuzzification of imprecise expected total profit. Finally, genetic algorithm (GA) and fuzzy simulation-based genetic algorithm (FSGA) are used to make decisions for the above inventory models. The models are illustrated with some numerical data. Sensitivity analysis on expected profit function is also presented.Scope and Purpose. The traditional inventory model considers the ideal case in which depletion of inventory is caused by a constant demand rate. However, to keep sales higher, the inventory level would need to remain high. Of course, this would also result in higher holding or procurement cost. Also, in many real situations, during a longer-shortage period some of the customers may refuse the management. For instance, for fashionable commodities and high-tech products with short product life cycle, the willingness for a customer to wait for backlogging is diminishing with the length of the waiting time. Most of the classical inventory models did not take into account the effects of inflation and time value of money. But in the past, the economic situation of most of the countries has changed to such an extent due to large-scale inflation and consequent sharp decline in the purchasing power of money. So, it has not been possible to ignore the effects of inflation and time value of money any more. The purpose of this paper is to maximize the expected profit in the random planning horizon.

The Time Value of Money Concept in Islamic Finance

2006 ◽  
Vol 23 (1) ◽  
pp. 66-89
Author(s):  
Abu Umar Faruq Ahmad ◽  
M. Kabir Hassan
Keyword(s):  
Basic Element ◽  
Islamic Finance ◽  
Purchasing Power ◽  
Conventional Theory ◽  
Modus Operandi ◽  
Time Value Of Money ◽  
Time Value ◽  
Value Of Money ◽  
Future Date ◽  
Rule Out

The time value of money is a basic investment concept and a basic element in the conventional theory of finance. The Shari`ah does not rule out this consideration, for it does not prohibit any increment in a loan given to cover the price of a commodity in any sale contract to be paid at a future date. What is prohibited, however, is making money’s time value an element of any lending relationship that considers it to have a predetermined value. Here, the Shari`ah requires that a loan be due in the same currency in which it was given. The value (i.e., purchasing power) of paper currencies varies due to changes in many variables over which the two parties of a loan contract usually have no control. This study examines possible modus operandi of time valuation according to the Shari`ah’s precepts vis-à-vis the concept of money, and whether any value can be attributed to time while considering money’s value. For this purpose, it investigates the juristic views on such relevant issues as the permissibility of difference between a commodity’s cash and credit prices and an increase and reduction of the loan’s amount in return for early repayment.

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