A study on an economic order quantity model designated for non-instant decaying goods with three-stage demand rates, linear holding cost and linear reciprocal partial backlogging rate

Abstract

This study examines economic order quantity model for non-instant decaying goods with three-stage demand rates, linear holding cost and linear reciprocal partial backlogging amount. The average annual demand rates before goods start decaying, after goods start decaying and during stockouts are not the same and both taken as constant. Stockouts are permitted and incompletely backlogged, and the backlogging amount is flexible and varies on the waiting time for the subsequent top up. The model determined the best time with positive inventory, cycle length and order quantity that reduce entire flexible price. The essential and satisfactory situations for the occurrence and exclusivity of the best solutions are found. Arithmetical example was given to elucidate the theoretical outcomes of the model. Sensitivity scrutiny of some model constraints on best solutions is carried out and recommendations to reducing the entire variable cost of the inventory structure were similarly given.