A Multi Item Inventory Model for Deteriorating Items with Expiration Date and Allowable Shortages

Shilpy Tayal; S  R  Singh   and Rajendra Sharma

doi:10.17485/ijst/2014/v7i4.17

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A Multi Item Inventory Model for Deteriorating Items with Expiration Date and Allowable Shortages

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Indian Journal of Science and Technology

DOI: 10.17485/ijst/2014/v7i4.17

Year: 2014, Volume: 7, Issue: 4, Pages: 463–471

Original Article

A Multi Item Inventory Model for Deteriorating Items with Expiration Date and Allowable Shortages

Shilpy Tayal^1*, S. R. Singh² and Rajendra Sharma¹

¹Department of Mathematics, Graphic Era University, Dehradun, India; agarwal_shilpy83@yahoo.com, rs.2103@yahoo.in
²Department of Mathematics, DN College, Meerut, India; shivrajpundir@gmail.com

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

Inventory decisions in supply chain are crucial for its success. These decisions become more important for the products with expiration date. Making these decisions in inventory systems with multiple products is a challenging task for managers. Most approaches in the literature for optimizing decisions in such an environment consider only a single item inventory. This paper presents a multi item inventory model to optimize the unit time profit of inventory management for the products having an expiration date after which the product can not be sold. As on one side the shortage costs are significant, on the other side, to maintain appropriate inventory levels for such type of products and avoid shortages is a very problematic job. For validation, the model is simulated and the results are compared. This article offers an approach for optimization and thus has business significance.
Keywords: Deterioration, Expiration Date, Lead Time, Multi Items, Partial Backlogging, Shortages