An Optimal Control in Inventory for Deteriorating Items along with Shortages

ABSTRACT A model is derived in inventory for deteriorating items with the quadratic constant quadratic type demand rate under three different situations when inventory level reaches to zero. The rate of deterioration is followed by Weibull distributed deterioration. Here, shortages are allowed during the finite planning horizon. In this paper, we determine the total number of deteriorating items, total number of shortage quantity and total number of carrying inventory during the entire planning horizon. The main objective of this model is to develop an optimal policy which minimizes the number of deteriorating items as well as the shortages quantity. Finally, the model is illustrated by a numerical example for each scenario. Keywords: Quadratic demand, Inventory level, Deterioration, Weibull distributed deterioration, Inventory, Shortage, Optimal Policy