An inventory model with power demand and partial backlogging under demand dependent on both time and price

A bivariate function based on the price and time that permits shortages is the inventory model with demand. During the time of the shortage, it is thought that there is a backlog in demand, and the remaining amount is regarded as lost income. That is the result of two power functions, the product of...

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Bibliographic Details
Main Authors: Aritonang, Reanty Teresa, Darnius, Open, Sutarman
Format: Conference Proceeding
Language:English
Subjects:
Bivariate analysis
Demand
Shortages
Time dependence
Online Access:Get full text
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Summary:A bivariate function based on the price and time that permits shortages is the inventory model with demand. During the time of the shortage, it is thought that there is a backlog in demand, and the remaining amount is regarded as lost income. That is the result of two power functions, the product of which relies on both the market price and the time since the previous inventory replenishment. The goal of the EOQ approach is to identify the best price, lot size, and inventory duration in order to reduce overall cost of inventory and maximize profitability in relation to the inventory model. An exemplary numerical example is given to show how to apply this strategy.
ISSN:0094-243X
1551-7616
DOI:10.1063/5.0192310