Research Article Open Access

Inventory Models with Power Demand and Inventory-Induced Demand with Holding Cost Functions

Rakesh Prakash Tripathi1, Sarla Pareek2 and Manjit Kaur2
  • 1 Graphic Era University, India
  • 2 Banasthali University, India
American Journal of Applied Sciences
Volume 14 No. 6, 2017, 607-613

DOI: https://doi.org/10.3844/ajassp.2017.607.613

Submitted On: 20 November 2015 Published On: 6 April 2017

How to Cite: Tripathi, R. P., Pareek, S. & Kaur, M. (2017). Inventory Models with Power Demand and Inventory-Induced Demand with Holding Cost Functions. American Journal of Applied Sciences, 14(6), 607-613. https://doi.org/10.3844/ajassp.2017.607.613

Abstract

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.

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Keywords

  • Variable Holding Cost
  • Stock
  • Power Demand
  • Optimization
  • Time-Dependent