51. A Replenishment Policy for an Inventory Model with Price-Sensitive Demand with Linear and Quadratic Back Order in a Finite Planning Horizon.
- Author
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Mishra, Nitin Kumar, Namwad, Renuka S., and Ranu
- Subjects
BACK orders ,INVENTORIES ,HESSIAN matrices ,DYNAMICAL systems ,SENSITIVITY analysis ,HORIZON - Abstract
In this research article, we proposed an inventory model for the replenishment policy. The focus of our research article is on the companies that frequently deal with backorders. An advanced inventory model considering back order has been proposed the results highlight the dynamic nature of the system, with optimal values achieved in different cycles. In this model, replenishment policy is given and to lower the economic ordering cost, we used new parameters such as price-sensitive demand, complete back ordering, and backorder is taken as a quadratic function as well as linear backorder with shortages in a finite planning horizon. The result is discussed for both backorders (linear and quadratic), to minimize the total cost obtained using the Hessian matrix to be positive definite. Software 'MATHEMATICA VERSION 12' has been used for the solution of the proposed model by using numerical iterative method. For different parameters, different tables are provided. The outcomes of the sensitivity analysis with the help of tables and graphs are depicted. Finally, we have discussed the conclusion and practical implications. [ABSTRACT FROM AUTHOR]
- Published
- 2024
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