Inventory Models with Power Demand and Inventory-Induced Demand with Holding Cost Functions
Rakesh Prakash Tripathi, Sarla Pareek and Manjit Kaur
DOI : 10.3844/ajassp.2017.607.613
American Journal of Applied Sciences
Volume 14, Issue 6
In real life customers are motivated to buy more if there is more availability of product. In this study, we develop inventory model for inventory dependent demand with different holding cost function. Mathematical formulations are discussed for two situations i.e., power demand rate with inventory dependent holding cost functions and inventory-induced demand rate with time and inventory dependent holding cost functions. The second order approximation is applied for exponential terms to find numerical values. Numerical examples are discussed to illustrate the models proposed in this study. The sensitivity analysis is given for optimal (minimum) solution with respect to key parameters is also discussed.
© 2017 Rakesh Prakash Tripathi, Sarla Pareek and Manjit Kaur. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.