Probabilistic Inventory Model Using All Unit Discount Factor and Inflation
Keywords:Model with Backorder Condition, The Gamma Inventory Probabilistic Model, The Inventory Model with Discount and Inflation, The Inventory
Inflation causes the price per unit of goods to rise in the future. To offset inflation, companies can take advantage of discounts provided by suppliers. But ordering goods must be adjusted according to demand to avoid storage costs. This study describes a probabilistic supply model with demand at a time with a Gamma distribution and waiting for the discount and inflation factors. Backorder conditions in this model is assumed. The research produces a probabilistic inventory model and an algorithm to obtain the optimal number of orders and optimal ordering times for items that are all discounted and inflated with Gamma distribution demand.
P. ?laski, “Management of the Size of the Supply Under the Conditions of Inflation,” New Trends in Production Engineering, vol. 2, no. 2, pp. 279–288, 2019, doi: 10.2478/ntpe-2019-0092.
K. Namit and J. Chen, “Solutions to the inventory model for gamma lead-time demand,” International Journal of Physical Distribution & Logistics Management, vol. 29, no. 2, pp. 138–154, 1999, doi: 10.1108/09600039910264713.
J. E. Tyworth and R. Ganeshan, “A note on solutions to the inventory model for gamma lead-time demand,” International Journal of Physical Distribution & Logistics Management, vol. 30, no. 6, pp. 534–539, 2000.
E. R. Wulan and W. Nurjaman, “An economic order quantity model with shortage and inflation,” AIP Conference Proceedings, vol. 1677, no. June 2020, 2015, doi: 10.1063/1.4930642.
M. Valliathal and R. Uthayakumar, “A study of inflation effects on an eoq model for weibull deteriorating/ameliorating items with ramp type of demand and shortages,” Yugoslav Journal of Operations Research, vol. 23, no. 3, pp. 441–455, 2013, doi: 10.2298/YJOR110830008V.
How to Cite
Copyright (c) 2021 Mohammad Soleh, Arinal Haque, Yuslenita Muda
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.