Salvage value and three variable Weibull deteriorating rate for non-instantaneous deteriorating items

Existing study gives ordering policy for non-instantaneous deteriorating items having three-variable Weibull distribution deterioration rate. Demand rate varies in different time interval. Before deterioration starts, demand is constant and after that it decreases exponentially with respect to time. The study considers total cost function as objective function including salvage value. Shortages are not allowed to stay in time-based competition. Results are proved theoretically and numerically. Sensitivity analysis is performed with respect to salvage value, scale parameter, shape parameter and location parameter including in deterioration rate function to show the liability of the model.

An Optimal Policy with Three-Parameter Weibull Distribution Deterioration, Quadratic Demand, and Salvage Value Under Partial Backlogging

This paper deals with an EOQ (Economic Order Quantity) model for deteriorating items having the following characteristics: 1) Deteriorating items follow a three-parameter Weibull distribution deterioration rate; 2) Shortages are allowed and are partially backlogged; 3) Salvage value of items is incorporated; 4) Demand is deterministic and a time-dependent quadratic function of time. The principal objective of the introduced model is to minimize the average total inventory cost by finding an optimal replenishment policy. The effectiveness of the model is validated with a numerical example and the sensitivity analysis of the optimal solutions to changes in the values of the various parameters associated with the model has been performed.