Investigating The Impact of Inflation on Inventory Systems: Time-Dependent Quadratic Demand, Time-Variable Deterioration, and Shortage

Abstract

This paper describes the effect of inflation on an inventory system in which the deterioration rate of items is time-dependent and demand is a time-dependent quadratic function of time. Here, shortages are permitted with a partial backlogging rate with exponentially decreasing function. This research aims to determine the ideal ordering amount and optimize the inventory cost. The sensitivity analysis of the optimal solution for various parameters is carried out. Finally, the relationship between parameters and total inventory cost is shown in the figure.