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Deterministic inventory model for items with Time varying demand, weibull distribution deterioration and shortages

Wu Kun-Shan (Department of Bussines Administration, Tamkang University, Tamsui, Taipei, Taiwan)

In this paper, an EOQ inventory model is depleted not only by time varying demand but also by Weibull distribution deterioration, in which the inventory is permitted to start with shortages and end without shortages. A theory is developed to obtain the optimal solution of the problem; it is then illustrated with the aid of several numerical examples. Moreover, we also assume that the holding cost is a continuous, non-negative and non-decreasing function of time in order to extend the EOQ model. Finally, sensitivity of the optimal solution to changes in the values of different system parameters is also studied.

Keywords: Inventory, time-varying demand, Weibull distribution, shortage.