Optimizing Preservation Strategies for Deteriorating Items with Time-Varying Holding Cost and Stock-Dependent Demand

  • Aditi Khanna Department of Operational Research, Faculty of Mathematical Sciences, New Academic Block, University of Delhi, Delhi-110007, India
  • Priyamvada Pritam Department of Operational Research, Faculty of Mathematical Sciences, New Academic Block, University of Delhi, Delhi-110007, India
  • Chandra K Jaggi University of Delhi

Abstract

Organizations are keen on rethinking and optimizing their existing strategies so as to attain profitability. The increasing deterioration rate is fatal for the overall benefit of the organization. An investment in preservation technology is by far the most influential move towards dealing with deterioration adroitly. The proposed framework studies the impact of preservation technology in controlling the lifespan of deteriorating items. Moreover, it is noticed that the demand pattern of many products is reliant on its availability and usability. Obliging with this fact, the demand for the product is considered to be “stock-dependent” and the holding cost is assumed to vary with time. The developed model minimizes the retailer’s total cost by optimizing the cycle span while simultaneously reducing the investment in preservation technology. Numerical examples with various special conditions have been discussed and key model features are explicated through sensitivity analysis.

Published
Feb 3, 2020
How to Cite
KHANNA, Aditi; PRITAM, Priyamvada; JAGGI, Chandra K. Optimizing Preservation Strategies for Deteriorating Items with Time-Varying Holding Cost and Stock-Dependent Demand. Yugoslav Journal of Operations Research, [S.l.], v. 30, n. 2, p. 237-250, feb. 2020. ISSN 2334-6043. Available at: <http://yujor.fon.bg.ac.rs/index.php/yujor/article/view/743>. Date accessed: 29 mar. 2024.
Section
Articles