TY  - JOUR
AU  - Sarbjit, Singh 
AU  - Raj, Singh Shiv 
PY  - 2010
TI  - A Stock Dependent Economic Order Quantity Model for Perishable Items Under Inflationary Conditions
JF  - American Journal of Economics and Business Administration
VL  - 2
IS  - 3
DO  - 10.3844/ajebasp.2010.317.322
UR  - https://thescipub.com/abstract/ajebasp.2010.317.322
AB  - Problem statement: In most of the earlier inventory models, effect of inflation has been
ignored, which is playing pilot role in present environment. In this article, we have proposed an
economic order quantity model for deteriorating items having stock dependent demand (whose demand
varies with the stock) under the effect of inflation. Approach: Firstly, problem is framed in the form
of linear differential equation model and then this model has been solved with general solution
technique of linear differential equations. Using the solution the expression for total cost of inventory
has been obtained. Results: Using total cost equation an optimal order quantity is obtained and
convexity of various costs is also studied. This model helps retailer to decide his economic order
quantity for deteriorating items having stock dependent demand. The consideration of effect of
inflation makes this model more relevant for present business environment. Conclusion: The
convexity of various costs proves the validity of this model. The effect of inflation with two different
rates is also studied in tables below considering both constant as well as stock dependent demand.
The graph of these tables shows that the optimal inventory cost increases with increase in number of
cycles it increases rapidly in starting but becomes stable for large number of cycles. The proposed
model can be extended in several ways. For instance, we may generalize the model to allow for
shortages, quantity discounts, time value of money, finite replenishment rate, permissible delay in
payments and others.