An Inventory Model for Perishable Goods with Partial Backlogging of Shortages

Abstract

This study illustrates inventory associated with deteriorating items. Nowadays the incident deterioration has a major impact on the preservation of goods in terms of handling inventory. The significant effect of deterioration has been observed on volatile liquids, fish, vegetables, etc. Here a mathematical model is presented incorporating the effect of deterioration. The model has been developed on an infinite time horizon. The shortage is allowed and backlogged partially. We aim to find out lot-size and back-ordered quantities in order to minimize the total average cost. In support of the proposed model, a numerical example has been provided. The stability of the solution of that example has been confirmed by performing a sensitivity analysis of key parameters. A graphical representation of cost function regarding decision variables has been displayed.