TITLE:
Optimal Ordering Policy for Deteriorating Items Having Constant Demand and Deterioration Rate
AUTHORS:
Sarbjit Singh
KEYWORDS:
Perishable Goods, Optimality, Sensitivity, Economic Order Quantity
JOURNAL NAME:
Theoretical Economics Letters,
Vol.7 No.7,
December
14,
2017
ABSTRACT: This study derives an optimal ordering policy for
perishable products. Here the demand considered is constant demand and items
considered have a constant rate of
deterioration. The sensitivity analysis of model has been done and
formula for calculating optimal ordering quantity has been derived. The model
follows the classical EOQ model, i.e. the point of minima is the point where the total ordering cost is equal to the
sum of holding costs and deterioration cost.