Optimal Replenishment policy for Items with Three-parameter Weibull distribution Deterioration, Stock-level dependent Demand and partial backlogging

  • Smaila S. SANNI Department of Statistics, Faculty of Physical Sciences, University of Nigeria,Nsukka,Nigeria
  • Polycarp E. CHIGBU Department of Statistics, Faculty of Physical Sciences, University of Nigeria,Nsukka,Nigeria

Abstract

Our focus in this paper is on determining an optimal replenishment policy for items with three-parameter Weibull distribution deterioration
and inventory-level dependent demand. We developed and analyzed the model under the assumption of partial backlogging. The three-parameter Weibull hazard rate captures the impact of already deteriorated items that are received into the inventory, as well as those items that may start deteriorating in future. The inventory-level demand reflects a real market demand for product whose sales is enhanced by stock on display. We study a case base examples to gain some quantitative insight into the proposed model and we perform sensitivity analysis to draw some managerial implications.


Keywords: Inventory Model, Stock-Dependent Demand, Dierential Equation, Optimal Policy, Hazard function.

Published
Jan 18, 2017
How to Cite
SANNI, Smaila S.; CHIGBU, Polycarp E.. Optimal Replenishment policy for Items with Three-parameter Weibull distribution Deterioration, Stock-level dependent Demand and partial backlogging. Yugoslav Journal of Operations Research, [S.l.], jan. 2017. ISSN 2334-6043. Available at: <http://yujor.fon.bg.ac.rs/index.php/yujor/article/view/117>. Date accessed: 19 oct. 2017.
Section
Articles