Enhancement of some Deterministic Inventory Models

A Synopsis submitted
to
Department of Mathematics
Indira Gandhi University, Meerpur(Rewari)
for registration to

DOCTOR OF PHILOSOPHY (Ph.D) in MATHEMATICS

By
Shelly
Roll No. - Ph.D 2004

Under the Supervision of

Dr. Rajender Kumar

Assistant Professor

Department of Mathematics
Indira Gandhi University, Meerpur (Rewari)
2022
 Contents

1 Introduction

1.1 Operation Research

1.2 Inventory Management
1.3 Some Important Parameters involved in Inventory Management
1.4 Modelling

2 Aims and Objectives

2.1 Operating Objectives

2.2 Financial Objectives

3 Review of Literature

4 Published Research Work

5 Paper Presented in Conference

6 Patent Published

7 Workshop Attented

8 Proposed Research Work

9 Research Methodology

10 References

Appendix
1 Introduction
1.1 Operation Research
Operations Research (Operational Research, O.R., or Management science)
includes a great deal of problem-solving techniques like Mathematical mod-
els, Statistics and algorithms to aid in decision-making. O.R. is employed
to analyse complex real-world systems, generally with the objective of im-
proving or optimizing performance. In other words, Operations Research is
an interdisciplinary branch of applied mathematics and formal science which
makes use of methods like mathematical modelling, algorithms statistics and
statistics to reach optimal or near optimal solutions to complex situations.
It is usually worried about optimizing the maxima (for instance, profit,
assembly line performance, bandwidth, etc) or minima (for instance, loss,
risk, cost, etc.) of some objective function. Operational Research aids the
management to accomplish its objectives utilizing scientific methods. While
researching for operations research (O.R.) history, I discovered that history is
not clear cut, different people have diverse views of the same event. Based on
the history of Operations Research, it is believed that Charles Babbage (1791-
1871) is the father of Operational Research due to the fact that his research
into the cost of transportation and sorting of mail resulted in England’s
universal Penny Post in 1840. The name operations research evolved in the
year 1940. During World War 2, a team of scientist (Blackett’s Circus) in
UK applied scientific techniques to research military operations to win the
war and the techniques thus developed was named as operation research.
As a formal discipline, operations research originated from the efforts of
army advisors at the time of World War II. In the years following the war, the
methods started to be employed extensively to problems in business, industry
and society. Ever since then, OR has developed into a subject frequently
employed in industries including petrochemicals, logistics, airlines, finance,
government, etc. Thus, the Operational Research began during World War
II in great Britain with the establishment of groups of scientists to analyze
the strategic and tactical problems associated with military operations. The
aim was to discover the most efficient usage of limited military resources by
the application of quantitative techniques. At the conclusion of war different
things happened to O.R. in the Great Britain and in the United States.
In the UK expenses on defense research were lowered; this resulted in the
discharge of numerous Operational Research workers from the military at
a time when business managers were facing the need to restore much of
Britain’s production facilities which had been ruined in war. Professionals
in the nationalized basic industries, specifically, needed assistance from the

1
OR men leaving the military organization.
To the contrary, defense research in US was increased and O.R. was ex-
panded at the conclusion of war. The majority of the experienced workers
stayed in the service of the army. The ultimate involvement of science in
industrial problems of the executive type in the US is a result of the advent
of Second Industrial revolution. World war II had sparked scientific advances
in the study of communication, computation, & control which produced the
technological grounds for automation. In early 1950s industry started to take
in a few of the Operational Research workers who left the army. Thus O.R.
started to spread and expand in the United States.

India was among the few nations which began utilizing O.R. In 1949, the first
Operational Research unit was established at Hyderabad which was named
Regional Research Laboratory located. At the same time an additional unit
was launched in Defense Science Laboratory to fix the Stores, Purchase and
Planning Problems.
In 1953 at Calcutta, an O.R. unit was established in Indian Statistical
Institute. The objective was to use O.R. techniques in National Planning and
Survey. In 1955, Operations Research Society of India was created, which is
among the first members of International Federation of Operations Research
societies. Today, the utilization of O.R. techniques have spread out from
army to a wide range of departments at all levels.

1.2 Inventory Management

A business can run smoothly its operating activities only when appropriate
amount of inventory is maintained. Inventory affects all operating activities
like manufacturing, warehousing, sales etc. The amount of opening inventory
and closing inventory should be sufficient enough so that the other business
activities are not adversely affected. Thus, inventory plays an important role
in operations management.
Inventory is an asset that is owned by a business that has the express purpose
of being sold to a customer. Inventory refers to the stock pile of the product
a firm is offering for sale and the components that make up the product. In
other words, the inventory is used to represent the aggregate of those items
of tangible assets which are –
ˆ Held for sale in ordinary course of the business.

ˆ In process of production for such sale.

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 ˆ To be currently consumed in the production of goods or services to be
available for sale.

The inventory may be classified into three categories:

1.2.1 Raw material and supplies: It refers to the unfinished items which
go in the production process.

1.2.2 Work in Progress: It refers to the semi-finished goods which are not
100% complete but some work has been done on them.

1.2.3 Finished goods: It refers to the goods on which 100% work has been
done and which are ready for sale.

Inventory management is the practice overseeing and controlling of the order-

ing, storage and use of components that a company uses in the production of
the items it sells. A component of supply chain management, inventory man-
agement supervises the flow of goods from manufacturers to warehouses and
from these facilities to point of sale. Inventory control means efficient man-
agement of capital invested in raw materials and supplies, work-in-progress
and finished goods.

1.3 Some Important Parameters involved in Inventory

Management
1.3.1 Holding Cost(Storage Cost or Carrying Cost): Holding costs
are the additional costs involved in storing and maintaining a piece of
inventory over the course of a year. Holding costs are computed in
the economic order quantity calculation that businesses use in order to
decide the optimal time to order new inventory.

1.3.2 Ordering Cost(Replenishment Cost or Set-up Cost): Costs as-

sociated with the processing and chasing of the purchase order, trans-
portation, quality inspection etc. Ordering costs are the costs related
to the preparation of a supplier’s order, including the cost of placing
an order, inspection costs, documentation costs, and others.

1.3.3 Shortage Cost(Penalty Cost): Shortage costs are those costs in-
curred by an organization when it has no inventory in stock. These
costs include the loss of business from customers who go elsewhere to

3
 make purchases, the loss of the margin on sales that were not com-
pleted, and overnight shipping costs to acquire goods that are not in
stock.
1.3.4 Lead Time(Delivery Lags and Procurement Time): Lead time
is the amount of time between ordering something and receiving it.
1.3.5 Economic Order Quantity: Economic Order Quantity (EOQ) is a
production formula used to determines the most efficient amount of
goods that should be purchased based on ordering and carrying costs.
In other words, it represents the optimal quantity of inventory a com-
pany should order each time in order to minimize the costs associated
with ordering and holding inventory.
1.3.6 Partial Backlogging: The term ’backlog’ refers to a build-up of work
that has not been completed in a timely fashion. In most practical
situations there is a combination of above extreme i.e. customers search
for new supplier and some may wait for the consignment. Hence there
is lost of sales but it is only partial loss.
or
When we have the reserve stock for completing only the partial demand
then that is said to be partial backlogging
1.3.7 Fully/Complete Backlogging: When we have the reserve stock for
completing the overall demand then that is said to be fully or com-
pletely backlogging

1.4 Modelling
Modelling is the essence of operation research. A model is an abstraction of
idealised representation of a real life problem. Modelling is a real life situation
helps us to study the different behaviour of the problem corresponding to the
description of the problem. A model can be a picture, a map, a curve or an
equation. The reliability of the decision drawn from the model may depend
upon the validity of the model or the basic assumptions on which the model
is built.
Classification by structure of models:-
1.4.1 Iconic Models: Iconic models are the physical representation of some
item either in an idealized form or on a different scale.
1.4.2 Analogue Models: In analogue model one set of properties is used
to represent another set of properties. The solution of the model is
reinterpreted in term of the original system.

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1.4.3 Symbolic Models: The symbolic model is one which employs asset
of mathematical symbols like letters, numbers etc. to represent the
decision variables and their relationship of the system.

Classification by degree of certainty:-

1.4.4 Deterministic Inventory Models: Deterministic model is a method

based on the assumption that all parameters and variables associated
with an inventory stock are known and that there is no uncertainty
associated with demand and replenishment of inventory stock.

1.4.5 Probabilistic Inventory Models:Probabilistic models recognise the

fact that there is always some degree of uncertainty associated with the
demand pattern and lead times for inventory stock.

2 Aims and Objectives

The objective of inventory management is to maintain inventory at an appro-
priate level to avoid excess or shortage of inventory. Inventory management
systems reduce the cost of carrying inventory and ensure that the supply of
raw material and finished goods remains continuous throughout the business
operations. The objectives specifically may be divided into two categories
mentioned below:

2.1 Operating Objectives: They are related to the operating activities

of the business like purchase, production, sales etc.

a. To ensure continuous supply of materials.

b. To ensure uninterrupted production process.
c. To minimize the risks and losses incurred due to shortage of in-
ventory.
d. To ensure better customer services.
e. Avoiding of stock out danger.

2.2 Financial Objectives:

a. To minimize the capital investment in the inventory.

b. To minimize inventory costs.
c. Economy in purchase.

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Apart from the above objectives, inventory management also emphasize to
bring down the adverse impacts of holding excess inventory. Holding excess
inventory lead to the following consequences:

ˆ Unnecessary investment of funds and reduction in profit.

ˆ Increase in holding costs.

ˆ Loss of liquidity.

ˆ Deterioration in inventory.

3 Review of Literature
In real-life problems, especially for controlling inventory. One of the main
concerns of the management is to decide when and how much to order or
produce so that the total cost related to the inventory setup should be mini-
mum. Research in this direction began with the work of Whitin who assumed
that the fashion goods are deteriorating at the end of a determined storage
period. Earlier analysis was done by Ghare and Schrader consider contin-
uously decaying inventory for constant demand. An order-level inventory
model for items deteriorating at a constant rate was considered by Shah and
Jaiswal. Aggarwal developed an order-level inventory model by correcting
and modifying the error in Shah and Jaiswal’s analysis in calculating the
average inventory holding cost. In all these models, the demand rate and
the deterioration rate were constants, the replenishment rate was infinite,
and no shortage in inventory was allowed. Researchers started to develop
inventory systems allowing time variability in one or more than one parame-
ter. Dave and Patel discussed an inventory model for replenishment. Hallier
and Mak, Wee, Benkherouf, Chung and Tsai, Wee, Su et. al., Park, all
are the researchers who had worked on Inventory Models. Recently, Goyal
and Giri came with up a detailed review of deteriorating inventory litera-
ture. In a recent paper, Chang and Dye inspected an EOQ Model allow-
ing for shortages. Burwell, establish Economic Lot Size Model for price-
dependent demand under quantity and freight discounts. Bhunia and Maiti
[3] presented some realistic inventory models in which the production rate
depends on on-hand inventory. Wu, J.W. [24] et. al derived the EOQ Model
for inventory that deteriorates at a Weibull rate, assuming demand with a
ramp type function of time. Then Wu [25] created a model in which the
Inventory Model begin with shortages and end without shortages.Lee [11]
et. al.,dealed with the inventory model which is depleted not only by time

6
varying demand, but also by mixtures of exponentially distributed deteri-
oration.Ghosh [4] developed a model for a single-item inventory having a
time-varying quadratic demand.Ouyang [17] et.al., presented an EOQ inven-
tory model for deteriorating items with exponential declining demand and
partial backlogging.Skouri [21] et. al., considered Inventory Models with
ramp type demand rate, partial backlogging and Weibull distribution rate.
Karmakar [7] and Chaudhury studied an order level inventory model for de-
teriorating items with time-varying holding cost. Shah N.H.,[18] developed
ordering policy for deteriorating items when demand is exponentially decreas-
ing.Mukherjee [16] produced a model in which the time of duration of short-
ages increases as deterioration increases.Bhowmick [2] et. al., dealed with a
continuous production inventory model for deteriorating items with short-
ages.Sharma [20] developed an inventory model for deteriorating items, such
as fruits, vegetables and food stuffs from depletion by direct spoilage while
kept in store, The demand rate is assumed of time dependent. The shortages
are allowed and shortages are completely backlogged.Ibe [5] developed an
Inventory Model for goods that follows constant deterioration with time and
time varying holding cost.Lakshami [10] has written a review of literature
on Inventory Management.Maragatham [13] et. al., presented Deteministic
Inventory Model for Deteriorating Items in single ware house and consider
lead time as constant,Shortages are allowed in lead time and completely
backlogged.The EOQ Model developed by Wilson is one of the oldest known
model.Shah [19] proposed an Inventory System with variable holding cost,
variable purchasing cost and variable demand rate.Mishra [14] et. al., done
study on Inventory Management system of linamar pvt. ltd.,Pune.Sohail
[22] presented a case study for the steel manufacturing industry (Small Scale
Industry) on inventory management. Khobragade [8] considered Inventory
Management as a software.Islam [6] presented A case study of an SME com-
pany.Long [12] demonstrated that the structural deterioration has an effect
on the value of damage detection information. Sohani [23] et. al., presented
analysis of inventory management practices in small scale industry. Aliyu
[1] et.al., developed an Inventory Model which determines the optimal or-
der quantity of on-hand inventory due to generalised exponential decreasing
demand.

4 Published Research Work

4.1 Shelly and Kumar, R., Inventory Model with Demand as a Polyno-
mial Function of Time and Time Dependent Deterioration,International
Journal of Science and Research (IJSR), Volume 10 Issue 9, September

7
 2021.

4.2 Shelly and Kumar, R., Inventory Model with Demand as a Polyno-
mial Function of Time and Constant Deterioration, International Jour-
nal of Innovative Science and Research Technology, Volume 6, Issue 9,
September 2021.

4.3 Shelly and Kumar, R., Inventory Model with General Demand and
Deterioration, Turkish Online Journal of Qualitative Inquiry (TOJQI),
Volume 12, Issue 9, August 2021: 5970-5975.

4.4 Shelly and Kumar, R., An Inventory Model having Polynomial De-
mand with Time Dependent Deterioration and Holding Cost, Interna-
tional Journal of Innovative Science and Research Technology, ISSN
No:-2456-2165, Volume 7, Issue 3, March – 2022.

4.5 Shelly and Kumar, R., An Inventory Model having Polynomial De-
mand with Time Dependent Holding Cost, Turkish Online Journal of
Qualitative Inquiry (TOJQI), Volume 13, Issue 1, January 2022: 1494-
1501.

5 Paper Presented in Conference

“An Inventory Model with Time Dependent Deterioration and Polynomial
Demand ” is Presented in Conference Organized by: Department of Mathe-
matics in collaboration with Department of Physics, Department of Chem-
istry & Department of ICT, Chaudhary Bansi Lal University, Bhiwani-127021
Haryana, (INDIA)

6 Patent Published
Patent entitled “Smart System and Method for Inventory Tracking and Man-
agement Using AI ” is published under THE PATENTS ACT, 1970 (39 OF
1970) & THE PATENTS RULES, 2003

7 Workshop Attented
ˆ “National Workshop on Python” organised by Department of Math-
ematics, Indira Gandhi University Meerpur, Rewari (Haryana).

8
 ˆ “National Workshop on Vedic Mathematics” organised by De-
partment of Mathematics, Indira Gandhi University Meerpur, Rewari
(Haryana) in collaboration with Shiksha Sanskriti Utthan Nyas, New
Delhi.

8 Proposed Research Work

We shall study the following models in detail in which further generalization
shall be made. Applications of these models shall also be find out.

8.1 Aliyu and Sani[1] discussed an inventory model for deteriorating items
with a generalized exponential increasing demand, constant holding
cost and constant deterioration rate.

ˆ This model can be generalized by taking general deterioration rate and

by taking shortages as allowed with partial packlogging.

8.2 Bhunia and Maiti [3] developed deterministic inventory models for vari-
able production.

ˆ This model can be further generalized by taking storages as partial

backlogged.

8.3 Ibe and Ogbeide [5] developed an inventory model for deteriorating
items with exponential increasing demand and time varying holding
cost under partial backlogging.

ˆ This model can be further generalized by taking exponential decreasing

demand and also exponential decreasing backlogging rate.

8.4 Kumar, Pathak and Gupta [9] developed a deterministic inventory

model for deteriorating items with selling price dependent demand and
parabolic time varying holding cost under trade credit.

ˆ This model can be further generalized by taking general holding cost.

8.5 Maragatham and Palani [13] worked on inventory model for deteriorat-
ing items with Lead time price dependent deterioration and shortages.

ˆ This model can be further generalized by taking demand as logarithm

function of time.

9
 8.6 Mishra and Singh [15] developed an deteriorating inventory model with
time dependent demand and partial backlogging.

ˆ This model can be further generalized by taking demand as a quadratic

function of time.

8.7 Ouyang, Wu and Cheng [17] developed an inventory model for deteri-
orating items with exponential demand and partial backlogging.

ˆ This model can be further generalized by taking Weibull distributed

deterioration.

8.8 Shah and Mohmmadraiyan [18] discussed an order-level lot-size model

for deteriorating items for two storage facilities when demand is expo-
nentially declining.

ˆ This model can be further generalized by taking general demand.

8.9 Sharma and Chaudhary [20] developed an inventory model for deterio-
rating items with Weibull deterioration with Time dependent demand
and shortages.

ˆ This model can be further generalized by taking shortages as partially

backlogged.

8.10 Wu, Lin, Tan and Lee [24] developed an EOQ inventory model with
ramp type demand rate for items with Weibull deterioration.

ˆ This model can be further generalized taking shotages as partial back-

logged.

8.11 The generalization of some more previously developed inventory models

can also be done.

9 Research Methodology
Research Methodology of inventory models comprises of, first converting the
system into suitable differential equations with the help of given boundary
conditions and initial conditions and then solving the equations with the
proper method for finding out the various values needed for the inventory
system. Then the numerical analysis is done along with studying the sensi-
tivity analysis of parameters involved in the inventory system. Software like

10
MatLab and Mathematica are used for these calculations.
For Example:- If Demand Rate is taken as D(t) and Deterioration Rate Func-
tion is taken as θ(t) and the shortages are allowed and fully backlogged, then
we convert our inventory system in suitable differential equations like shown
below:
dI(t)
+ θ(t)dt = −D(t) (1)
dt
dI(t)
= −D(t) (2)
dt
Then by solving these equations and using mathematical analysis we will find
out different values of cost related to inventory system and at last value of
total average cost and after that optimized value of cost is find out.

References
[1] Aliyu,I. and Sani,B., An Inventory Model for Deteriorating Items with a
Generalised Exponential Increasing Demand, Constant Holding Cost and
Constant Deterioration Rate, Vol. 14, no.15,pp.725-736,2020.

[2] Bhowmick,J. and Samanta,G.P., A Deterministic Inventory Model of De-

teriorating Items with Two Rates of Production, Shortages and Variable
Production Cycle, ISRN Applied Mathematics, Volume 2011,Article ID
657464,16 pages.

[3] Bhunia,A.K. and Maiti,M., Deterministic Inventory Models for Variable

Production, Journal of Operational Research Society (1997)48,221-224.

[4] Ghosh,S.K. and Chaudhuri,K.S., An Order-Level Inventory Model for a

Deteriorating item with Weibull Distribution Deterioration ,Time-Quadric
Demand and Shortages, Advanced Modelling and Optimization , Vol-
ume6,Number 1,2004.

[5] Ibe,C.B. and Ogbeide, D.O., An Inventory Model for Deteriorating Items
with Exponential Increasing Demand and Time Varying Holding Cost
under Partial Backlogging, Centrepoint Journal(Science Edition),Volume
22,No.2,pages 69-75.

[6] Islam,S.S., et. al., Inventory Management Efficient Analysis:A Case

Study of an SME Company, 4th Annual Applied Science and Engineer-
ing Conference,2019.

11
[7] Karmakar,B. and Choudhury,K.D., Inventory Models with ramp -type de-
mand for deteriorating items with partial backloggingand time-varing hold-
ing cost, Yugoslav Journal of Operations Research, Vol 2, pp. 249-266,
2014.

[8] Khobragade,P., et. al., Research Paper on Inventory Management

System,International Research of Engineering and Technology,Vol:0 Is-
sue:04,april 2018.

[9] Kumar,V. ,Pathak,G. and Gupta,C.B., A deterministic Inventory model

for deteriorating items with selling price dependent demand and parabolic
time varying holding cost under trade credit, International Journal of Soft
Computing and Engineering(IJSCE), ISSN: 2231-2307, Volume-3, Issue-4,
September 2013.

[10] Lakshmi,V.V. and Ranganath,K., Inventory Management- A Review of

Relevant Literature,Volume:5,Issue:8,August 2016.

[11] Lee,W.C. and Wu,J.W., A Note on EOQ Model for items with mixtures
of exponential distribution, shortages and time-varying demand, Kluwer
Academic Publishers,Vol.38, pp. 457-473,2004.

[12] Long.,L. et. al., The effects of deterioration models on the value of dam-
age detection information, Taylor and Francis Group,London,2019.

[13] Maragatham,M. and Palani,R., An Inventory Model for Deteriorating

Items with Lead Time price Dependent Demand and Shortages, ISSN 0973-
6107 Volume 10,Number 6(2017) pp. 1839-1847.

[14] Mishra,A. and Salunkhe,H.A., A Study of Inventory Management Sys-

tem of Linamar India Pvt. Ltd,Pune, Amity Journal of Operations Man-
agement, 3(1),(35-41),2018.

[15] Mishra,V.K. and Singh,L.S., Deteriorating Inventory Model with Time

Dependent Demand and Partial Backlogging, Applied Mathematical Sci-
ences, Vol. 4,2010, no. 72, 3611-3619.

[16] Mukherjee,B. and Prasad,K., A Deterministic Inventory Model of De-

teriorating items with stock and time dependent demand rate, 2010.

[17] Ouyang,L.Y., Wu,K.S. and Cheng,M.C., An Inventory Model for Deteri-

orating items with Exponential Declining Demand and Partial Backlogging,
Yugoslav Journal of operations research,15(2005),Number 2,pp.277-288.

12
[18] Shah,N.H. and Mohmmadraiyan,M., An Order-Level Lot-Size Model for
Deteriorating items for two storage facilities when demand is Exponen-
tially Declining, Revista Investigation Operacional, Vol.31,No.3,pp.193-
199,2010.

[19] Shah,N.H. and Naik,M.K., Inventory Policies for Price-Sensitive Stock-

Dependent and Quantity Discounts, International Journal of Mathemati-
cal,Engineering and Management Sciences, Vol. 3,No.3, pp.245-257, 2018.

[20] Sharma,V. and Chaudhary,R.R., An Inventory Model for Deteriorating

items with weibull deterioration with time dependent demand and short-
ages, Research Journal of Management Sciences,Vol.2(3),pp.1-4,March
2018.

[21] Skouri,K. ,et. al., Inventory Models with ramp type demand rate ,partial
backlogging and weibull deterioration rate, European Journal of Opera-
tional Research,Vol.192,pp.79-92,2009.

[22] Sohail,N. and Sheikh,T.H., A Study of Inventory Management System

Case Study, Journal of Adv Research in Dynamical and Control Sys-
tems,Vol. 10, 10- Special issue, 2018.

[23] Sohani,N. and Pagare,A., Study and Analysis of Inventory Management

Practices in small scale industry,JETIR(ISSN-2349-5162),Vol.1, Issue 1.

[24] Wu,J.W., Lin,C., Tan,B. and Lee,W.C., An EOQ Inventory Model with
ramp type demand rate for items with weibull deterioration, Imformation
and Management Sciences,Vol.10,No.3, pp. 41-51, 1999.

[25] Wu,K.S., Deterministic Inventory Model for items with time varying de-
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APPENDIX

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 International Journal of Science and Research (IJSR)
ISSN: 2319-7064
SJIF (2020): 7.803

Inventory Model with Demand as a Polynomial

Function of Time and Time Dependent
Deterioration
Shelly1, Dr. Rajender Kumar2
1
Research Scholar, Department of Mathematics, Indira Gandhi University, Meerpur (Rewari), 122502,(Haryana), India
shelly.math.rs[at]igu.ac.in
2
Assistant Professor & Supervisor, Department of Mathematics, Indira Gandhi University, Meerpur (Rewari) 122502,(Haryana), India

Abstract: In the present paper, an inventory model is generated for deteriorating items with shortages which are fully reserved.
Demand rate is assumed as polynomial function of time and deterioration rate is dependent of time.

Keywords: Inventory Model, Demand, Deterioration, Cost

1. Introduction deteriorates with time, such as fruits, vegetables, and

foodstuffs by considering demand as time-dependent. Long
Inventory management has become the most concerning (2019) [9] demonstrated that structural deterioration affects
thing in working of any organization. Deterioration of items the value of damage detection information. In the present
has affected inventory management. Deterioration takes paper, working is done based on the above papers by
place for many reasons like environment, weather, time, etc., considering demand as a polynomial function of time and
for example, some items are only useable in a certain time-dependent deterioration.
season, some items deteriorate with time, like food products.  
So there is a need for Inventory management keeping in 2. Assumptions and Notations
mind the effect of deterioration. In history, many researchers
have worked in this direction and created certain models. 2.1 Notations
Some of them are listed here based on Demand and
Deterioration. The following are the notations used here:-
1) C1 = Inventory Holding Cost per unit per unit time.
Datta & Pal (1988) [3], Lee & Wu (2002) [7], Sharma, 2) C2 = Shortage cost per unit per unit time.
Sharma & Ramani (2012) [16] and Sharma & Preeti (2013) 3) C3 = Deterioration cost per unit per unit time.
[15] considered Power demand pattern for items that 4) T = Length of each cycle.
deteriorates with time, using varying deterioration in their 5) I(t) = Inventory at any time t.
respective models. Wu (1999) [20], Wu (2002) [19], Lee & 6) C(t) = Average total cost.
Wu (2002) [7], Skouri et. Al. (2009)[18],Sharma et. Al. 7) D(t) = Demand Rate
(2012)[16] considered Weibull distributed deterioration in 8) I(t) = Deterioration Rate Function
their respective models. 9) S = Initial Inventory

Sharma et. Al. (2012) [16], Karmakar et.al. (2014) [6], Ibe 2.2 Assumptions
et. Al. (2016) [5], Shah (2018) [14] considered time varying
holding cost in their respective models. Lee (2004) [8] The following are the assumptions used here:-
created model with exponential distributed deterioration and 1) Demand Rate D(t) is assumed as polynomial function of
Wu (2002) [19] & Ghosh (2004) [4] created model with time, given by D(t) = t + 2t2+ 3t3+ ::: + ntn.
time varying quadratic demand. Wu (1999) [20] and Skouri 2) The deterioration rate function, (t) is assumed in the
(2009)[18]developed models with ramp type demand rate. form (t) = t ; 0 < <<1; t >0.
3) Replenishment size is constant and the replenishment
Ouyang (2005) [12], Shah (2010) [13] and Aliyu (2020) [1] rate is infinite.
developed models with exponentially declining demand. 4) The Lead time is zero.
Mukherjee (2010) [11] developed a model in which the time 5) Shortages are considered and are totally reserved.
of duration of shortages varies directly with deterioration. 6) During the period T, neither is replacement nor repair of
Bhowmick (2011) [2] et. Al., developed a model with deteriorated units.
continuous production model for deteriorating items with
shortages. 3. Analysis of Model
Maragatham (2017) [10] et. Al., presented Model for Items Let Inventory level at any time t be I(t). Inventory level
in a single warehouse and assumed constant lead time. slowly decreases during time interval (0, t1), t1<T and
Sharma (2018) [17] developed a model for items that becomes exactly zero at t = t1. Shortages takes place in the

Volume 10 Issue 9, September 2021

www.ijsr.net
Licensed Under Creative Commons Attribution CC BY
Paper ID: SR21913192013 DOI: 10.21275/SR21913192013 871
Volume 6, Issue 9, September – 2021 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165

Inventory Model with Demand as a Polynomial

Function of Time and Constant Deterioration
Shelly1 and Dr. Rajender Kumar (Supervisor)2
1
Research Scholar, Department of Mathematics, Indira Gandhi University,
Meerpur (Rewari), 122502, (Haryana), India,
2
Assistant Professor, Department of Mathematics, Indira Gandhi University,
Meerpur (Rewari), 122502, (Haryana), India

Abstract:- In the present work, a model of inventory Mukherjee(2010)[11] developed a model in which the
management is generated for deteriorates goods, with time of duration of shortages varies directly with
shortages which are fully reserved. Demand rate is deterioration. Bhowmick(2011) [2] et. al., developed a
assumed as polynomial function of time and model with continuous production model for deteriorating
deterioration rate is independent of time i.e. constant items with shortages. Maragatham(2017)[10] et. al.,
deterioration. presented Model for Items in a single warehouse and
assumed constant lead time . Sharma(2018)[17] developed a
I. INTRODUCTION model for items that deteriorates with time, such as fruits,
vegetables, and foodstuffs by considering demand as time-
Inventory management has become the most important dependent. Long(2019)[9] demonstrated that structural
thing in order to minimize the cost related to inventory and deterioration affects the value of damage detection
to maximize the overall profit. Sometimes companies, or information. In the present paper, working is done based on
any kind of organization face problems in maintaining their the above papers by taking demand as a function which is
inventory, because of some stocks of goods that deteriorates polynomial in nature with respect to time and time-
over time, like dairy products and like fashion goods, they independent deterioration i.e. constant deterioration.
only have sales in the market when they are in trend,
otherwise, they are wasted and there are so many products II. ASSUMPTIONS AND NOTATIONS
that deteriorate with time. So there is a need for inventory
models, which consider the effect of the deterioration of Notations:-
items. From the previous century, many models are
generated on this topic. Some of the Cited models are listed The following are the notations used here:-
below . 1. C1 = Cost per unit of holding inventory per unit time i.e.
Holding Cost
Datta & Pal (1988)[3], Lee & Wu (2002)[7], Sharma, 2. C2 = Shortage cost per unit per unit time.
Sharma & Ramani (2012)[16] and Sharma & Preeti 3. C3 = Deterioration cost.
(2013)[15] considered Power demand pattern for items that 4. T = Each cycle length.
deteriorates with time,using varying deterioration in their 5. I(t) = Inventory at any time t.
respective models. Wu (1999) [20], Wu (2002) [19], Lee & 6. C(t) = Average total cost.
Wu (2002)[7], Skouri et. al. (2009)[18], Sharma et. al. 7. D(t) = Demand Rate
(2012)[16] considered Weibull distributed deterioration in 8. θ(t) = Deterioration Rate Function
their respective models. Sharma et. al. (2012)[16], Karmakar 9. S = Initial Inventory
et.al. (2014)[6], Ibe et. al. (2016)[5], Shah (2018) [14]
considered time varying holding cost in their respective Assumptions:-
models. Lee (2004)[8] created model with exponential The following are the assumptions used here:-
distributed deterioration and Wu (2002) [19] & Ghosh
(2004) [4] created model with time varying quadratic 1. Demand Rate D(t) is assumed as polynomial function of
demand. Wu (1999)[20] and Skouri (2009)[18] developed time, given by D(t) = t + 2t2 + 3t3 + ... + ntn.
models with ramp type demand rate. Ouyang (2005)[12], 2. The deterioration rate function, θ(t) is assumed in the
Shah (2010)[13] and Aliyu (2020)[1] developed models form θ(t) = 𝜃0 .
with exponentially declining demand. 3. Replenishment size is constant and the replenishment rate
is infinite.
4. The Lead time is zero.
5. Shortages are considered and totally reserved.
6. During the period T, neither is replacement nor repair of
deteriorated units.

IJISRT21SEP338 www.ijisrt.com 543

 inventory model with general demand and deterioration
 
Turkish Online Journal of Qualitative Inquiry (TOJQI)
Volume 12, Issue 9, August 2021: 5970-5975

Inventory Model with General Demand and Deterioration

Shelly1 and Dr. Rajender Kumar (Supervisor)2
1
Research Scholar, Department of Mathematics, Indira Gandhi University,
Meerpur (Rewari), 122502, (Haryana), India,
[email protected]
2
Assistant Professor, Department of Mathematics, Indira Gandhi University,
Meerpur (Rewari), 122502, (Haryana), India

ABSTRACT

In the present paper, an inventory model is generated for deteriorating items where Demand rate and
Deterioration rate are taken as general and in the second part holding cost is also taken as general
function of time.

Keywords :- Inventory, Demand, Deterioration, Cost, Shortage.

1 Introduction

Inventory management has become the most valuable, important, and undetachable part of business
organizations, and deterioration of the stock goods has affected inventory management crucially. How
much of the amount is to be ordered? and when to order the stock of goods? is the most important
question to prevent the loss to the business organization. Thus, we need inventory models by also
looking at the effect of deterioration. Many researchers have worked in this field, by creating models
with different values of demand, deterioration, and holding cost. Power demand pattern for items that
deteriorates with time is considered by Datta & Pal (1988) [3], Lee & Wu (2002) [7], Sharma, Sharma
& Ramani (2012) [16] and Sharma & Preeti (2013) [15] using time varying deterioration in their
respective models. Weibull distributed deterioration is considered by Wu (1999) [20], Wu (2002) [19],
Lee & Wu (2002) [7], Skouri et. al. (2009) [18], Sharma et. al. (2012) [16] considered in their
respective models. Time varying holding cost is used by Sharma et. al. (2012) [16], Karmakar et.al.
(2014) [6], Ibe et. al. (2016) [5], Shah (2018) [14] in their respective models. Exponential distributed
deterioration is used by Lee (2004) [8] in creating model and Wu (2002) [19] & Ghosh (2004) [4]
created model with time varying quadratic demand. Wu (1999) [20] and Skouri (2009) [18] developed
models with ramp type demand rate. Ouyang (2005) [12], Shah (2010) [13] and Aliyu (2020) [1]
developed models with exponentially declining demand. Mukherjee (2010) [11] developed a model in
which the time of duration of shortages varies directly with deterioration. Bhowmick (2011) [2] et. al.,
developed a model with continuous production model for deteriorating items with shortages.
Maragatham (2017) [10] et. al., presented Model for Items in a single warehouse and assumed constant
lead time. Sharma (2018) [17] developed a model for items that deteriorates with time, such as fruits,
vegetables, and foodstuffs by considering demand as time-dependent. Long (2019) [9] demonstrated

5970 
 
Volume 7, Issue 3, March – 2022 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165

An Inventory Model having Polynomial Demand with

Time Dependent Deterioration and Holding Cost
Shelly1, Dr. Rajender Kumar (Supervisor)2
1
Research Scholar, 2Assistant Professor
Department of Mathematics, Indira Gandhi University,
Meerpur (Rewari),122502, (Haryana), India

Abstract:- In this paper, an inventory model is developed Shelly and Kumar, R., (2021) [10] [11] [12] developed
for deteriorating goods with shortages which are fully models by taking polynomial demand with deterioration as
reserved. Demand rate is taken as polynomial function of time dependent in one model & constant deterioration in
time whereas deterioration rate and holding cost is taken other model and developed one model with time dependent
as dependent of time. demand and deterioration. Soni and Kumar, R., (2021) [13]
[14] [15] developed models by taking bi-quadratic
I. INTRODUCTION polynomial demand with static rate of deterioration in one
model & variable rate of deterioration in other model and
Inventory management has become the trend now for one model with demand as time dependent with static rate of
better running of an organization, as it’s concerned with deterioration. The working of the current work is based on
minimization of cost and maximization of profit. The fact the above cited works and specially on paper by Shelly and
that most of the goods deteriorate with time has affected Kumar, R. [10] by using holding cost as a linear function of
inventory management. So, we are required to manage the time.
system of inventory considering the effect caused by
deterioration and generation of such type of models is II. ASSUMPTIONS AND NOTATIONS
required for this purpose. From the last few decades, many
researchers have developed such kinds of models. Some of A. Notations: -
the work is listed below. The following are the notations used here: -
 h(t) = Inventory Holding Cost per unit per unit time.
Bhunia and Maiti (1997) [2] created some realistic
 C2 = Shortage cost per unit per unit time.
models in which rate of production depends on on-hand
inventory. Wu, J.W. et al., (1999) [16] derived the EOQ  C3 = Deterioration cost per unit per unit time.
Model with Weibull rate, assuming ramp type demand.  T = Length of each cycle.
Ouyanget.al., (2005) [7] considered exponential declining  I(t) = Inventory at any time t.
demand and partial backlogging in his model. Shah N.H.  C(t) = Average total cost.
(2010),[8] developed policy of order for items that  D(t) = Demand Rate Function
deteriorates with time when demand is exponentially  8.𝜃(t) = Deterioration Rate Function
decreasing. Mishra, V.K. et al., [6] developed model with  S = Initial Inventory
time dependent demand and partial backlogging. Sharma
(2013) et al., [9] developed model by taking Weibull B. Assumptions: -
Distributed Deterioration. Kumar, V., etal., [4] created The following are the assumptions used here: -
inventory model by taking demand that depends on selling  Demand Rate D(t) is assumed as polynomial function
price and under trade credit holding cost is taken as time of time, given by D(t) = t + 2t2+ 3t3+…+ ntn.
dependent. Ibe et al., (2016) [3] developed a Model that  The deterioration rate function, 𝜃(t) is assumed in the
follows constant deterioration with time and time varying form 𝜃(t) = 𝜃0 t; 0 <𝜃0 <<1; t >0.
holding cost. Maragatham (2017) [5] et. al., presented  The holding cost is assumed in the form h(t) = h + at,
Model for Deteriorating Items in single ware house and where h>0, a>0.
consider lead time as constant, Shortages are allowed in lead  Replenishment size is constant and the replenishment
time and completely backlogged. Aliyu (2020) etal., [1], rate is infinite.
considered generalised exponential decreasing demand in  The Lead time is zero.
his model.  Shortages are considered and are totally reserved.
 During the period T, neither is replacement nor repair
of deteriorated units.

IJISRT22MAR1067 www.ijisrt.com 1271

 An Inventory Model having Polynomial Demand with Time Dependent Holding Cost

Turkish Online Journal of Qualitative Inquiry (TOJQI)

Volume 13, Issue 1, January 2022: 1494-1501

An Inventory Model having Polynomial Demand with Time Dependent

Holding Cost
Shelly1and Dr. Rajender Kumar (Supervisor)2
1
Research Scholar, Department of Mathematics, Indira Gandhi University,
Meerpur (Rewari), 122502, (Haryana), India,
[email protected]
2
Assistant Professor, Department of Mathematics, Indira Gandhi University,
Meerpur (Rewari), 122502, (Haryana), India

Abstract
In the current work, an inventory model for deteriorates goods is developed in which
shortages are fully reserved. Polynomial Demand is taken here with holding cost as a
quadratic function of time and deterioration rate is taken as constant.

Keywords: -Inventory, Demand, Deterioration, Cost, Shortage.

1 Introduction

Inventory Management has gained popularity in the last decades because of its priority in
minimization of costs and maximization of profit in various kinds of businesses and
organizations. The priority of inventory management is mainly affected by the deterioration
of items. As the deterioration of items may result in loss of companies. Thus, the need of
developing the models for inventory management keeping in view the effect of deterioration
occurs. From the last few decades, many researchers have developed such kinds of models.
Some of the work is listed below.

Bhunia and Maiti (1997) [2] created some realistic models in which rate of production
depends on on-hand inventory. Wu, J.W. et al., (1999) [16] derived the EOQ Model with
Weibull rate, assuming ramp type demand. Ouyang et.al., (2005) [7] considered exponential
declining demand and partial backlogging in his model. Shah N.H. (2010),[8] developed
policy of order for items that deteriorates with time when demand is exponentially
decreasing. Mishra, V.K. et al., [6] developed model with time dependent demand and partial
backlogging. Sharma (2013) et al., [9] developed model by taking Weibull Distributed
Deterioration. Kumar, V., et al., [4] created inventory model by taking demand that depends
on selling price and under trade credit holding cost is taken as time dependent. Ibe et al.,
(2016) [3] developed a Model that follows constant deterioration with time and time varying
holding cost. Maragatham (2017) [5] et. al., presented Model for Deteriorating Items in single
ware house and consider lead time as constant, Shortages are allowed in lead time and
completely backlogged. Aliyu (2020) et al., [1], considered generalised exponential
decreasing demand in his model.

Shelly and Kumar, R., (2021) [10] [11] [12] developed models by taking polynomial demand
with deterioration as time dependent in one model & constant deterioration in other model
and developed one model with time dependent demand and deterioration. Soni and Kumar,

1494
 In Honor of
Srinivasa Ramanujan’s Birthday
ICSSR and HSCSIT
sponsored
International Conference
on
MATHEMATICAL MODELING IN PHYSICAL SCIENCES,
SOCIAL SCIENCES AND TECHNOLOGY
17-18 December, 2021

This is to certify that Prof/Dr/Mr/Ms Shelly, Indira Gandhi University, Meerpur, Rewari presented a research
paper entitled “An Inventory Model with Time Dependent Deterioration and Polynomial Demand” in ICSSR
and HSCSIT Sponsored International Conference on Mathematical Modeling in Physical Sciences, Social
Sciences and Technology organized on 17-18 December, 2021.

Organized by: Department of Mathematics

In Collaboration with: Department of Physics, Department of Chemistry &
Department of ICT
Chaudhary Bansi Lal University, Bhiwani-127021 Haryana, (INDIA)

ID: ICMM/MST-116

Dr. Rahul Tripathi Dr. Surender Kumar Prof Dinesh K. Madan

Org. Secretary Co-Convener Convener
 FORM 2

THE PATENTS ACT, 1970

(39 OF 1970)
&
THE PATENTS RULES, 2003
Provisional/Complete Specifications
[See Section 10 and rule 13]

1. Title of the Invention: Smart System and Method for Inventory Tracking and Management
Using AI

2. APPLICANT(S)
Name Nationality Address

Dr. Rajender Kumar Indian Department of Mathematics

Indira Gandhi University Meerpur (Rewari)
Ms. Shelly Indian Department of Mathematics
Indira Gandhi University Meerpur (Rewari)

3. The following specifications particularly describes the invention and the manner in. which it
is to be performed.
4. DESCRIPTION (Description shall start from next stage.)
1. Enclosed-Annexure I
5. CLAIMS (Not applicable for provisional specification. Claims should start with the
preamble
– “I/We claim” on separate page)
Enclosed- AnnexureII

6. DATE AND SIGNATURE (to be given at the end of last page of specification)
7. ABSTRACT OF THE INVENTION (to be given along with complete specification on
separate page)
Enclosed- Annexure III

(Dr. Rajeev Kumar Kapoor)

IN/PA- 1779

Authorised Patent Agent for applicant

To,
The Controller of Patents,
The Indian Patent Office,
At Mumbai
ANNEXURE-I
1