Yugoslav Journal of Operations Research 2022 Volume 32, Issue 4, Pages: 515-528
https://doi.org/10.2298/YJOR220318025S
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Flexible inventory system of imperfect production under deterioration and inflation
Sharma Archana (Department of Applied sciences, KIET Group of Institutions Delhi-NCR, Ghaziabad, U.P.), jmdarchanasharma@gmail.com
Singh Chaman (Department of Mathematics, A.N.D. College Govindpuri, New Delhi), chamansingh07@gmail.com
Verma Priyanka (Research Scholar, Bhagwant University Ajmer (Rajasthan)), ajendermalik@gmail.com
Malik A.K. (School of Sciences, UP Rajarshi Tandon Open University, Prayagraj, India, Department of ASH, B. K. Birla Institute of Engin. and Tech. Pilani (Raj.))
This study emphasizes the development of a flexible inventory system considering rework requirements on imperfect and defective items. This work has
considered defective items could be sold at a lower price in the market as
compared to the perfect items. The developed model has considered Weibull
deterioration and inflation to balance the same amount in the future due to
its potential earning capacity. And demand's function depends on price as
well as inventory level because a large pile of goods and their price
strategy attracts more customers to generate higher demand. The work also
supports managerial decision-making by focusing on the volume flexibility
system for smooth production runs. The mathematical formulation of the
developed inventory system tries to optimize the inventory cost function
under a realistic scenario. A solution procedure has been illustrated and
assisted with a numerical example. Later, a validation test is also
performed to check the robustness of the proposed mathematical model. The
findings of the study will support policymakers, strategists, and firms to
implement flexible inventory systems under realistic conditions.
Keywords: Weibull deterioration rate, stock and price-dependent demand rate, flexible production, inflation
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