An Optimal Policy for Items with Linear Demand Rate, Variable Deterioration Rate Under Shortage and Lead-Time

2021 ◽  
Vol 23 (06) ◽  
pp. 1-9
Author(s):  
Bhawna Gupta ◽  
◽  
Sangeeta Gupta ◽  
Sweta Srivastav ◽  
◽  
...  
Keyword(s):  
Sensitivity Analysis ◽  
Optimal Policy ◽  
Average Cost ◽  
Lead Time ◽  
Inventory Model ◽  
Deterioration Rate ◽  
Demand Rate ◽  
Linear Demand ◽  
Total Average Cost ◽  
Total Average

In this research, we have developed a deterministic inventory model for an item having linear demand in variable deterioration rate. The shortage is allowed and fully backlogged. In developing the model, we have assumed that lead time is not equal to zero. Here we developed an optimal policy that minimizes that the total average cost. The model is illustrated by a suitable numerical example and sensitivity analysis has been carry- out.

scholarly journals An Inventory Model with Exponential Demand Rate, Finite Production Rate and Shortages

2009 ◽  
Vol 1 (3) ◽  
pp. 473-483 ◽  
Author(s):  
R. Begum ◽  
S. K. Sahu ◽  
R. R. Sahoo
Keyword(s):  
Sensitivity Analysis ◽  
Production Rate ◽  
Average Cost ◽  
Optimal Solution ◽  
Inventory Model ◽  
Optimal Model ◽  
Numerical Examples ◽  
Demand Rate ◽  
Total Average Cost ◽  
Total Average

The paper contains an order-level inventory model having the demand rate to be a function of time. Here shortages are allowed and completely backlogged. An optimal model is developed by considering exponential demand which minimizes the total average cost. Numerical examples are used to illustrate the developed model. Sensitivity analysis of the optimal solution with respect to major parameters is carried out.  Keywords: Inventory; EOQ; Finite production; Shortages; Exponential demand. © 2009 JSR Publications. ISSN: 2070-0237 (Print); 2070-0245 (Online). All rights reserved.  DOI: 10.3329/jsr.v1i3.2054              J. Sci. Res. 1 (3), 473-483 (2009)     

scholarly journals Two warehouse inventory model for deteriorating item with exponential demand rate and permissible delay in payment

2017 ◽  
Vol 27 (1) ◽  
pp. 109-124 ◽  
Author(s):  
Naresh Kaliraman ◽  
Ritu Raj ◽  
Shalini Chandra ◽  
Harish Chaudhary
Keyword(s):  
Sensitivity Analysis ◽  
Inventory Model ◽  
Deteriorating Items ◽  
The Other ◽  
Inventory Cost ◽  
Numerical Illustration ◽  
Deterioration Rate ◽  
Permissible Delay In Payment ◽  
Demand Rate

A two warehouse inventory model for deteriorating items is considered with exponential demand rate and permissible delay in payment. Shortage is not allowed and deterioration rate is constant. In the model, one warehouse is rented and the other is owned. The rented warehouse is provided with better facility for the stock than the owned warehouse, but is charged more. The objective of this model is to find the best replenishment policies for minimizing the total appropriate inventory cost. A numerical illustration and sensitivity analysis is provided.

scholarly journals A New Mathematical Inventory Model with Stochastic and Fuzzy Deterioration Rate under Inflation

2014 ◽  
Vol 2014 ◽  
pp. 1-10 ◽  
Author(s):  
Bahar Naserabadi ◽  
Abolfazl Mirzazadeh ◽  
Sara Nodoust
Keyword(s):  
Lead Time ◽  
Inflation Rate ◽  
Inventory Model ◽  
Time Dependent ◽  
Nonincreasing Function ◽  
Deterioration Rate ◽  
Fuzzy Function ◽  
First Case ◽  
Replenishment Policy ◽  
Demand Rate

This paper develops an inventory model for items with uncertain deterioration rate, time-dependent demand rate with nonincreasing function, and allowable shortage under fuzzy inflationary situation. The goods are not deteriorating upon reception, but the deteriorating starts after elapsing a specified time. The lead time and inflation rate are both uncertain in the model. The resultant effect of inflation and time value of money is assumed to be fuzzy in nature and also we consider lead time as a fuzzy function of order quantity. Furthermore the following different deterioration rates have been considered: for the first case we consider fuzzy deterioration rate and for the second case we assume that the deterioration rate is time dependent and follows Weibull distribution with three known parameters. Since the inflation rate, deterioration rate, and the lead time are fuzzy numbers, the objective function becomes fuzzy. Therefore the estimate of total costs for each case is derived using signed distance technique for defuzzification. The optimal replenishment policy for the model is to minimize the total present value of inventory system costs, derived for both the above mentioned policies. Numerical examples are then presented to illustrate how the proposed model is applied.

scholarly journals EVALUATION OF PHARMACOECONOMIC DIRECT COST IN DIABETES PATIENTS

2017 ◽  
Vol 10 (4) ◽  
pp. 38
Author(s):  
Venkateswarlu Konuru ◽  
Kamala Sangam ◽  
Anifa Mohammed ◽  
Swathi Kanneganti
Keyword(s):  
Health Care ◽  
Diabetic Patient ◽  
Direct Medical Cost ◽  
Medical Cost ◽  
Average Cost ◽  
Health Care Cost ◽  
Vascular Complications ◽  
Illness Study ◽  
Total Average Cost ◽  
Total Average

Objective:  Diabetes Mellitus (DM) is a major cause of disability, morbidity and mortality Worldwide. The objective of this study is to evaluate the Pharmacoeconomic direct health care cost in type II Diabetes with complications and Diabetes alone: A cost of illness study. Methods:  A Prospective observational study was conducted for one year at the Care diabetes Center; Warangal. The enrolled patients were followed and the information collected contains: total direct costs, which include direct medical costs and direct nonmedical cost. The data observed was analyzed for the average cost incurred in treating the diabetic patient. Results:  The total average costs per diabetic patient without complications was Rs. 8695.7±1341,  this includes the average direct medical cost Rs. 6366.50± 561.12, the average lab cost Rs. 1368.84±64.8, the average direct non Medical Cost was Rs. 960.36±14.04 compared to  those with DM complications,the total average cost was Rs. 12960.73±549.96 for macro vascular complications, Rs. 11039.11±265.36 for micro vascular complications. To treat Diabetes with comorbidities which include both micro and macro complications the total average cost was  Rs. 16658.13±1393.44, the average direct medical cost was Rs. 14071.77±2884.68, the average lab cost Rs. 1628.04±51, the average direct non Medical Cost was Rs.958.32±13.08. The costs were found to increase progressively with the increase in the number of complications. Costs also differed significantly across the types of complications. Conclusion: Our study concludes that the cost of Diabetes with complications resulted about 2 times higher than compared to Diabetes alone.Key words:  Cost analysis; diabetes; economics; health care; direct medical cost; non medical cost

scholarly journals Financial Impact and Causes of Chronic Musculoskeletal Disease Cases in Malaysia Based on Social Security Organization of Malaysia Claims Record

2018 ◽  
Vol 7 (3.24) ◽  
pp. 23
Author(s):  
Norsheila Zainal Abidin ◽  
Jafri Mohd. Rohani ◽  
Athirah Nadia Nordin ◽  
Raemy Md. Zein ◽  
Augeny Satik anak Ayak
Keyword(s):  
Social Security ◽  
Direct Cost ◽  
Average Cost ◽  
Manufacturing Industry ◽  
Musculoskeletal Disease ◽  
Working Environment ◽  
Total Direct Cost ◽  
Body Parts ◽  
Total Average Cost ◽  
Total Average

This paper analyzed total direct cost that is paid by the Social Security Organization of Malaysia (SOCSO) to the Malaysian workers due to musculoskeletal disease. The objectives of this study are 1) to determine the total direct costs incurred as a result of cases of chronic musculoskeletal injuries that was approved by SOCSO from 2009 to 2014 and 2) to examine the age category imposed for the total average cost of the highest MSDs claims for the four categories setting. The data provided by SOCSO on occupational diseases and adopt the top-down approach which includes of 416 claims reported between 2009 and 2014. The categories recorded are the highest total direct cost for types of industries, types of injury, causes of accident and type of body parts. The age claimant is then identified from total average cost earned from the highest total direct cost of the four categories. Manufacturing industry, strenuous movement, sprain and strain and back are recorded as highest total direct cost with the cost of RM 5,181,282.34, RM 7,088,839.51, RM 8,753,975.13, and RM 5,526,590.69, respectively. The age group of 35 – 44 years is recorded as the highest total average cost of these four parameters. This study will provide the basis for future studies and intervention on MSD related injuries in working environment in Malaysia.  

Management of basal cell carcinoma in the United States: Can we simplify care and reduce cost?

2014 ◽  
Vol 32 (30_suppl) ◽  
pp. 17-17
Author(s):  
Xinyuan Wu ◽  
Elena B. Elkin ◽  
Jason Chih-Shan Chen ◽  
Ashfaq A. Marghoob
Keyword(s):  
Basal Cell Carcinoma ◽  
Cell Carcinoma ◽  
Basal Cell ◽  
Average Cost ◽  
The United States ◽  
Model Parameters ◽  
Traditional Management ◽  
Pre Treatment ◽  
Total Average Cost ◽  
Total Average

17 Background: Basal cell carcinoma (BCC) is the most common cancer in the US, affecting more than 3 million people every year, and the incidence of BCC is increasing. Traditional management of BCC involves multiple physician visits and a pre-treatment biopsy which may be unnecessary. We assessed the costs of treating BCC, comparing traditional management with a simplified scheme. Methods: We developed a decision analytic model to compare the costs of traditional BCC management with a simplified Detect and Treat (DAT) scheme that eliminates pre-treatment biopsy. We assumed that all patients had an unequivocal BCC diagnosis based on clinical and dermoscopic findings. In the traditional approach, all patients had a biopsy prior to treatment. In the DAT scheme, well delineated lesions ≤1cm in diameter on the trunk and extremities were treated with shave removal and Mohs indicated lesions were referred to Mohs for on-site histologic check, both eliminating pre-treatment biopsy. Distributions of lesion location, size and treatment modality, and estimates of clinical diagnostic accuracy and success of shave removal were from the literature and from an analysis of 240 consecutive BCC cases seen over 5 years at our institution. Costs were based on assumptions about the number of dermatologist visits, tests and procedures required for each strategy, and unit prices from the 2014 Medicare physician fee schedule. Results: The average cost per case in the DAT scheme was $449 for non-Mohs-indicated lesions and $819 for Mohs-indicated lesions, compared with $566 and $864, respectively, with traditional management. DAT was associated with a savings of $117 (21% of total average cost) per non-Mohs-indicated case and $45 (5% of total average cost) per Mohs-indicated case. The combined weighted average savings per case was $95 (15% of total average cost). The magnitude of savings varied with changes in model parameters, but conclusions were similar under a wide range of plausible scenarios. Conclusions: A simplified management strategy that avoids routine pre-treatment biopsy can reduce the cost of treating BCC without compromising quality of care.

scholarly journals An Algorithm for Solution of an Interval Valued EOQ Model

2012 ◽  
Vol 3 (1) ◽  
pp. 55-64 ◽  
Author(s):  
Susovan CHAKRABORTTY ◽  
Madhumangal PAL ◽  
Prasun Kumar NAYAK
Keyword(s):  
Lead Time ◽  
Solution Procedure ◽  
Lot Size ◽  
Setup Cost ◽  
Single Product ◽  
Interval Numbers ◽  
Eoq Model ◽  
Interval Valued ◽  
Total Average Cost ◽  
Total Average

This paper deals with the problem of determining the economic order quantity (EOQ)in the interval sense. A purchasing inventory model with shortages and lead time, whose carryingcost, shortage cost, setup cost, demand quantity and lead time are considered as interval numbers,instead of real numbers. First, a brief survey of the existing works on comparing and ranking anytwo interval numbers on the real line is presented. A common algorithm for the optimum productionquantity (Economic lot-size) per cycle of a single product (so as to minimize the total average cost) isdeveloped which works well on interval number optimization under consideration. A numerical exampleis presented for better understanding the solution procedure. Finally a sensitive analysis of the optimalsolution with respect to the parameters of the model is examined.

Joint reliability based design and periodic preventive maintenance policy for systems sold with warranty

2016 ◽  
Vol 22 (1) ◽  
pp. 2-17 ◽  
Author(s):  
M.N. Darghouth ◽  
Daoud Ait-Kadi ◽  
Anis Chelbi
Keyword(s):  
Average Cost ◽  
Numerical Procedure ◽  
Optimal Solution ◽  
Design Stage ◽  
Maintenance Policy ◽  
Content Type ◽  
Warranty Period ◽  
Reliability Based Design ◽  
Total Average Cost ◽  
Total Average

Purpose – The authors consider a system which is a part of a complex equipment (e.g. aircraft, automobile, medical equipment, production machine, etc.), and which consists of N independent series subsystems. The purpose of this paper is to determine simultaneously the system design (reliability) and its preventive maintenance (PM) replacements periodicity which minimize the total average cost per time unit over the equipment useful life, taking into account a minimum required reliability level between consecutive replacements. Design/methodology/approach – The problem is tackled in the context of reliability-based design (RBD) considering at the same time the burn-in of components, the warranty commitment and the maintenance strategy to be adopted. A mathematical model is developed to express the total average cost per time unit to be minimized under a reliability constraint. The total average cost includes the cost of acquiring and assembling components, the burn-in of each component, preventive and corrective replacements performed during the warranty and post-warranty periods. A numerical procedure is proposed to solve the problem. Findings – For any given set of input data including components reliability, their cost and the costs of their preventive and corrective replacements, the system design (reliability) and the periodicity of preventive replacement during the post-warranty period is obtained such as the system’s total average cost per time unit is minimized. The obtained results clearly indicate that a decrease in the number of PM actions to be performed during the post-warranty period increases the number of components to be added at each subsystem at the design stage. Research limitations/implications – Given that the objective function (cost rate function) to be minimized is non-linear and involves several integer variables, it has not been possible to derive the optimal solution. A numerical procedure based on a heuristic approach has been proposed to solve the problem finding a nearly optimal solution for a given set of input data. Practical implications – This paper offers to manufacturers a comprehensive approach to look for the most economical combination of the reliability level to be given to their products at the design stage, on one hand, and the PM policy to be adopted, on the other hand, given the offered warranty and service for the products and reliability requirements during the life cycle. Originality/value – While the RBD problem has been largely treated, most of the published works have focussed on the development or the improvement of solving techniques used to find the optimal configuration. In this paper the authors provide a more comprehensive approach that considers simultaneously RBD, the burn-in and warranty periods, along with the maintenance policy to be adopted. The authors also consider the context of products whose component failures cannot be rectified through repair actions. They can only be fixed by replacement.

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