Biswajit Sarkar^1*, Bimal Kumar Sett², Adrijit Goswami³, Sumon Sarkar⁴

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¹ Department of Industrial & Management Engineering, Hanyang University, Seoul, South Korea.
² Department of Mathematics, Hooghly Mohsin College, Hooghly, India.
³ Department of Mathematics, Indian Institute of Technology, Kharagpur, India.
⁴ Department of Applied Mathematics with Oceanology and Computer Programming, Vidyasagar University, Midnapore, India.
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Abstract: This paper describes a deteriorating inventory model with ramp-type demand pattern under stock-dependent consumption rate. The deterioration of the product is considered as probabilistic to make the research a more realistic one. The proposed model assumes partially backorder rate which follows a negative exponential with the waiting time. The effect of inflation and time value of money are incorporated into the model. The purpose of this study is to develop an optimal replenishment policy so that the total profit is maximized. We provide a simple solution procedure to obtain the optimal solutions. Numerical examples along with graphical representations are provided to illustrate the model. Sensitivity analysis of the optimal solution with respect to key parameters of the model has been carried out and the implications are discussed.

Keywords: Ramp-Type Demand, Stock-Dependent Consumption Rate, Partial Backorder, Inflation, Probabilistic Deterioration

Cite this paper: Sarkar, B. , Sett, B. , Goswami, A. and Sarkar, S. (2015) Mitigation of High-Tech Products with Probabilistic Deterioration and Inflations. American Journal of Industrial and Business Management, 5, 73-89. doi: 10.4236/ajibm.2015.53009.

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