Flexible Inventory System of Imperfect Production Under Deterioration and Inflation

  • Archana Sharma Department of Applied sciences, KIET Group of Institutions Delhi-NCR, Ghaziabad, U.P. - 201206
  • Chaman Singh Department of Mathematics, A.N.D. College Govindpuri, New Delhi- 110019
  • Priyanka Verma Research Scholar, Bhagwant University Ajmer (Rajasthan)
  • A. K. Malik School of Sciences, U P Rajarshi Tandon Open University Prayagraj-211013, U.P., India; Department of ASH, B. K. Birla Institute of Engineering & Technology Pilani (Rajasthan)

Abstract

This study emphasizes the development of a flexible inventory system considering rework requirements on imperfect and defective items. This work has considered defective items could be sold at a lower price in the market as compared to the perfect items. The developed model has considered Weibull deterioration and inflation to balance the same amount in the future due to its potential earning capacity. And demand’s function depends on price as well as inventory level because a large pile of goods and their price strategy attracts more customers to generate higher demand. The work also supports managerial decision-making by focusing on the volume flexibility system for smooth production runs. The mathematical formulation of the developed inventory system tries to optimize the inventory cost function under a realistic scenario. A solution procedure has been illustrated and assisted with a numerical example. Later, a validation test is also performed to check the robustness of the proposed mathematical model. The findings of the study will support policymakers, strategists, and firms to implement flexible inventory systems under realistic conditions.

Published
Nov 29, 2022
How to Cite
SHARMA, Archana et al. Flexible Inventory System of Imperfect Production Under Deterioration and Inflation. Yugoslav Journal of Operations Research, [S.l.], v. 32, n. 4, p. 515–528, nov. 2022. ISSN 2334-6043. Available at: <https://yujor.fon.bg.ac.rs/index.php/yujor/article/view/1192>. Date accessed: 28 mar. 2024. doi: http://dx.doi.org/10.2298/YJOR220318025S.
Section
Research Articles