An Analytical Inventory Model for Exponentially Deteriorating Inventory With Random Lead Time Under Random Input


Nita H. Shah, Chirag J. Trivedi




In the classical EOQ model, it is tacitly assumed that the lead time is zero and the quantity received matches with the quantity requisitioned and there is no damage or deterioration of units in inventory. However, in practice, we have observed that due to a variety of reasons there is a lead time and the-quantity received does not match the quantity ordered. In this paper, an attempt is made to develop an analytical EOQ model when units in inventory are subjected to deterioration, when there is significant lead time and the quantity received does not match the quantity ordered. The effect of various parameters on procurement quantity and average expected total cost of the inventory system is studied with the help of a hypothetical numerical illustration.