An Inventory Control Model for Fixed Deterioration and Logarithmic Demand Rates

Abstract

This paper proposes an inventory control model for fixed deterioration and Logarithmic demand rat for the optimal stock of commodities to meet the future demand which may either arise at a constant rate or may vary with time. The analytical development is provided to obtain the optimal solution to minimize the total cost per time unit of an inventory control system. Numerical analysis has been presented to accredit the validity of the mentioned model. Effect of change in the values of different parameters on the decision variable and objectives function has been studied.

Keywords:  Inventory Control, Fixed Deterioration, Logarithmic Demand rate, Commodities.