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J. Opl Res. Soc. Vol. 34, No. 6, pp. 543-546, 1983 0160-5682/83/060543-04S03.00/0
Printed in Great Britain. All rights reserved Copyright ? 1983 Operational Research Society Ltd
In this paper an attempt has been made to generalise Dave's results on an invento
deteriorating items. He has derived the results for optimal order level and lot size
deterministic constant demand throughout the scheduling period. Here, a variable kno
taken to show that the optimality conditions for the optimal initial stock do not depen
of the demand. A numerical example is used to illustrate the analysis.
INTRODUCTION
MODEL
The system starts with the inventory level of S0 and this amount is reduced by th
demand and deterioration. The inventory level comes to zero at time t = tx and the
demands occurring after the time tx are backlogged and are fulfilled by a new procuremen
Since every time the order quantity Q should raise the initial inventory level to S0,
<2=s0 + Z *, (1)
j=ti + i
Let Si be the inventory level at time point / = 0, 1, 2,.. . ,T. As we said earlier, at time
/
i == tx, S( = 0
i.e.
sh = o
543
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Journal of the Operational Research Society Vol. 34, No. 6
But
St = St . ? 9St _! ? Rt
i.e.
^(l-^Vi"^,
i.e.
s - *"
Similarly we can write
^/i -2 - 71 ^2 "?" ^ n
(1-0)2 l
9 ? ^'1I, ^'i-l
'I 'I-' , I^/,-2
in
(i-ey (i-9f i-e
s _ *.. , *.,-? , , *.
0 (i-e)" (i-e)''-1 1-0
The total number of units that deteriorate during sched
0(So + Sl + S2 + ... + S,l_l)
D(ti) = efj(R,iv-orj)
r-i j=\
The average inventory carrying cost per unit time is calculated as follows:
= ^ + sl + s2 + ... + s,i_l
'. =^iRj\-erj+i(Rl'i(\-0)-j)
The average inventory carrying cost per unit time is
c,/,(/,)
(3)
The calculation of average shortage cost per unit time runs as follows:
The average quantity short in tx + lth sub-interval is R,l + l/2. Thus R[[ + l units are
carried as a shortage for the next (T ? t{ ? 1) time units; similarly for the shortages arising
in the later sub-intervals.
Hence the average shortage cost per unit time is
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S. Rengarajan and M. N. Vartak?Dave's Inventory Model
i.e.
*w=fi(?i(i-f)-')
T
-2
K(t\+\)-K(t\>0 (6)
K(t\-\)-K(t?x)>0 (7)
where t?x is the optimal value of tx.
Using (5) in the conditions (6) and (7)
+ c2/,-^-c2(r-
and
^i\ i ^ . C2
Uio-eyJice + cj + ii-er^+^cd+^-j+c^-^-QiT-v^
and
T
U'zV-e^ (9)
since all /?,- > 0.
The conditions (8) and (9) are independent of Rj and hold good for any Rj. The result
obtained here is surprising since the optimal value of tx, and hence the initial stock value,
is not at all affected by the nature of Rj.
The optimality conditions (8) and (9) simplify to
M(tx-\)<^^M(tx)
where
^ + ^[(l-^)^ + 1>-l]-g;(l-^^ + ^
M(tl) = ~ 2{r-(/1 + i)} + i "'
NUMERICAL EXAMPLE
The following example is taken from Dave's1 paper and illustrates the a
in this section.
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Journal of the Operational Research Society Vol. 34, No. 6
Here 0.375 lies between M(6) and Af (7) so that the optimal value t?{ = 7.
The average minimum cost per day is calculated from the formula
C, c\f(l-0> -4-1
*('?) = * 0T T
c2(r-/?)2
Cx [(I-O)tT-I +
6t\ 2" 2r
= /ts4581.50
and
The minimum average cost per unit time obtained by this method (Rs4581.50)
than the cost value (Rs4768.18) given by Dave.1
REFERENCE
1 U. Dave (1979) On a discrete in time order level inventory model for deteriorating items
349-354.
546
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