Work

Optimal Inventory Management Strategy for Deteriorating Items

Year: 2025

Type: article

Abstract: This paper studied the problem of profit maximization for deteriorating item model where demand function is stock level dependent, deterioration is controllable, vendor can offer trade credit and shortages are completely backlogged. We derived the objective function which is the total average profit function and solved the profit maximization problem by using MatLab. From the numerical illustrations and sensitivity analysis, we found that the optimal total average profit and the optimal ordered quantity are sensitive to the reduced deteriorating rate and initial demand parameters.

Source: Afrischolar Discovery

DOI: 10.60787/jnamp.vol71no.601

Authors: T., Danjuma,, H. C, Chinwenyi,

Institutions: Federal University Gusau, Raw Materials Research and Development Council

Language: English

Topic: Supply Chain and Inventory Management

Subfield: Management Information Systems

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W7118990647

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