International Journal of Application or Innovation in Engineering & Management (IJAIEM)

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Volume 8, Issue 12, December 2019 ISSN 2319 - 4847

Minimization of Deteriorating Items in Inventory

Management System
Sandipa Bhattacharya 1*, Seema Sarkar (Mondal) 2
1
Research Scholar
Department of Mathematics
National Institute of Technology, Durgapur
Mahatma Gandhi Avenue, West Bengal-713209, India
2
Professor
Department of Mathematics
National Institute of Technology, Durgapur
Mahatma Gandhi Avenue, West Bengal-713209, India

* Corresponding Author

ABSTRACT
The control and maintenance of inventories for deteriorating items is a common but an important issue in all organization.
Items which are stocked for a long time interval in an inventory leads to the cause of deterioration. A management can suffer
loss due to the inappropriate inventory policy. To overcome such situation researchers are trying to their best to develop
suitable inventory models in inventory management system. In this paper, we develop an inventory model by considering the
deterioration of an item. The model is allowed shortages and the rate of deterioration is followed by the Weibull distributed
distribution. We determine total number of deteriorating items, shortage quantity and carrying inventory during a specified
time interval from this model. The main objective of this model is to minimize the total number of deteriorating items in the
inventory. Finally, we illustrate our model with a numerical example.

Keywords: Deterioration, Weibull distributed distribution, Inventory policy, Shortage.

1. Introduction
Deterioration of an item in inventory is the common but an essential factor in every inventory management system. It
is defined as the damage, decay or spoilage of an item. Maximum deterioration is occurred during the storage period of
the units of an item and its effect is fall on the entire inventory management system. To overcome such problem there is
a need for every manufacturer or supplier to control and maintain the inventory.
In recent years researchers draw an attention on the unit of deteriorated items during the storage period by
developing various types of inventory models. A deterioration inventory model is developed in [12] during the storage
period. In [9] a model is developed in order-level inventory for deteriorating items. In [1] deterioration for an item is
considered at a constant rate with an instantaneous replenishment. A deterministic inventory model is developed in [4]
with quantity discount, pricing and back-ordering when the stock of product is deteriorates with times. An inventory
model is developed in [7] with two parameters Weibull distribution where rate of replenishment is considered as finite.
A generalized economic order quantity model with three parameters Weibull distribution is developed in [8] to
determine the time of deterioration.
The rate of demand may not be always constant in every inventory management system, it may fluctuate over time.
An economic order quantity model is developed in [10] for determining the optimal number of replenishment with
replenishment time. They have taken the demand as linear and it is dependent on time over a finite time horizon. A
new replenishment policy is derived in [6] where shortages are allowed in every inventory cycle. In [11] a deterministic
price dependent demand for deteriorating items is developed over a fixed time horizon. They have considered the
production rate is finite and the rate of deterioration is dependent on time. An inventory model in [3] is developed
where the rate of demand is proportional with time and the rate of replenishment is instantaneous. They are not
allowed shortages in their paper. A more generalized model is developed in [5] where they considered rate of
production is finite and is proportional to the rate of demand. They also considered that the rate of deterioration is

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International Journal of Application or Innovation in Engineering & Management (IJAIEM)
Web Site: www.ijaiem.org Email: editor@ijaiem.org
Volume 8, Issue 12, December 2019 ISSN 2319 - 4847

directly proportional to the time. Profit maximization with two parameters Weibull distributed deterioration under the
assumption of exponentially decreasing demand is developed in [2].
In this paper, we develop an inventory model where we minimize the number of deteriorating items. Here, we
consider the situation where we obtain total number of deteriorating items, total number of shortages quantity and total
number of inventory carried during in a specified time horizon. Here, the rate of deterioration is followed by Weibull
distributed distribution. Finally, we verify our model with a numerical example.
2. Notations and Assumptions
The fundamental notations and assumptions used in this paper are given below:
(a) The replenishment rate is infinite, thus the replenishment is instantaneous.
(b) The demand rate R  t  , which is positive is assumed to be a quadratic function of time, i.e.,
 a1  b1t  c1t 2 ;0  t  1

R (t )   D0 ; 1  t  2
 2
 a2  b2 t  c2 t ; 2  t  T
where 1 is time point changing from the increasing demand to constant demand and 2 is time point changing from
constant demand to the decreasing quadratic demand.
(c) I (t ) is the level of inventory at any time t   0, T  .

(d) T is the fixed length of each ordering cycle.

(e) Deterioration rate  follows Weibull Distribution,    t (  1) , where 0    1 ,   1 and t  0 .

(f) t1 is the time when inventory level reach zero.
(g) t1* is the optimal time point.
(h) S is the maximum inventory level for the ordering cycle, such that S  I (0) .

3. Mathematical Formulation
We consider the deteriorating inventory model with quadratic-constant-quadratic type demand rate. Replenishment
occurs at time t  t1 when the inventory level attains its maximum. From t  0 to t1 the inventory level reduces due to
demand and deterioration. At t1 , the inventory level becomes zero, then shortage is allowed to occur during the time
interval  t1 , T  and all of the documents during the shortage period  t1 , T  are completely backlogged. The total
number of backlogged items is replaced by the next replenishment. According to the notations and assumptions
mentioned above, the behavior of inventory system at any time can be described by the following differential equations:

d  I  t   R  t  ; 0  t  t1 __(1)
I (t )  
dt  R  t  ; t1  t  T ________(2)
with boundary condition I  t1   0 . We consider three possible cases based on the values of t1 , 1 and 2 .
When 0  t  1 :

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Due to reasons of deterioration and quadratic type demand rate, the inventory level gradually diminishes during the
period  0,t1  and ultimately falls to zero at t1 . Then,

 
  I  t   a1  b1t  c1t 2 ; 0  t  t1 _______(3)

d
I (t )  
 1 1 1 
  a  b t  c t 2 ; t  t   ____________(4)
1 1

dt   D0 ; 1  t  2 _____________________(5)

 2

  a2  b2 t  c2 t ; 2  t  T ___________(6)
From equation (3) we obtain;
d
dt
 
I (t )   t (  1)  I (t )  a1  b1t  c1t 2 ;0  t  t1

This is a linear differential equation whose, I.F.= e t
 

  
Therefore, I (t )  e t    a1  b1t  c1t 2  e t dt    a1  b1t  c1t 2  1   t  dt   
(Neglecting the higher terms of  because   1 )

  b c t  1 t  2 t  3 
I (t )  e t    a1t  1 t 2  1 t 3  a1  1  b1   2  c1   3   k ; where k is a constant
 2 3 
Using boundary condition I (t1 )  0 , we obtain
b1 2 c1 3 t  1 t  2 t  3
k  a1t1  t1  t1  a1 1 1  b1 1  2  c1 1 3
2 3
Putting the value of k in the above equation, we get,
 b c a b c  
I (t )   a1  t1  t   1  t12  t 2   1  t13  t 3   11  t1 1  t  1   1 2  t1  2  t   2   1 3  t1  3  t   3    e t , where
 2 3 
0  t  t1
___________(7)
From equation (4) we obtain,
 b c 
I (t )    a1t  1 t 2  1 t 3   k1 ; t1  t  1 ; where k1 is a constant
 2 3 
Using boundary condition I (t1 )  0 , we obtain
 b c 
k1  a1t1  1 t12  1 t13 
 2 3 
Putting the value of k1 in above equation, we get,
 b c 
   
I (t )   a1  t1  t   1 t12  t 2  1 t13  t 3  ; t1  t  1 _______(8)
 2 3 
From equation (5) we obtain,
I (t )   D0 t  k2 ; 1  t   2 ; where k2 is a constant
Using boundary condition I (t1 )  0 , we obtain
 b c 
  
I ( 1 )   a1  t1  1   1 t12  12  1 t13  13 
 2 3 

 b c 
Therefore,  a1  t1  1   1  t12  12   1  t13  13     D0 1  k 2
 2 3 
 b c   b c 
 k2   a1t1  1 t12  1 t13    a1 1  1 12  1 13  D0 1 
 2 3   2 3 
 b c  b 2c 
 3  2 3 

  a1t1  1 t12  1 t13    1 12  1 13   1 a1  b1 1  c1 12  D0
2


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2
a1  b1 1  c1 1
But, D0   2
a2  b2 2  c2  2
b c
Therefore, 
k2  a1t1  1 t12  12  1 t13  2 13
2 3
  
Putting the value of k2 in above equation, we get,
b1 2 c
I (t )   D0 t  a1t1 
2
  
t1  12  1 t13  2 13 ; 1  t  2 ______(9)
3

b1 2 c
I ( 2 )   D0 2  a1t1 
2

t1  12  1 t13  2 13
3
  
From equation (6) we obtain,
 b c 
I (t )    a2 t  2 t 2  2 t 3   k3 ; 2  t  T ; where k3 is a constant
 2 3 
Using boundary condition, I ( 2 )  0 , we obtain
b1 2 c  b c 
I ( 2 )   D0  2  a1t1 
2
 3
 
 2 3 

t1  12  1 t13  2 13    a2  2  2  2 2  2  2 3   k3

 b c   b c 
Therefore, k3   a2 2  2 2 2  2 2 3  D0  2    a1t1  1 t12  12   1  t13  213  
 2 3   2 3 
1 2 b c
 a2 2  b2 2 2  b2 2 2  c2 2 3  c2 2 3  D0 2  a1t1  1 t12  12  1 t13  213
2 3 2 3
   
But, D0   a2  b2  2  c2  2 
2

1 2 b c

 k3  b2 2 2  c2  23  a1t1  1 t12  12  1 t13  213
2 3 2 3
  
Putting the value of k3 in above equation, we get,
b1 2 c b c
I (t )  a1t1 
2
    
t1  12  1 t13  2 13  a2 t  2 t 2  2 2  2 t 3  2 33 ; 2  t  T ______(10)
3 2 3
  
The beginning inventory level can be computed as, S  I (0)
Equation (7) gives;
 b c t  1 t  2 t  3 
S   a1t1  1 t12  1 t13  a1  b1  c1  ___________________________(11)
 2 3  1  2  3

Total number of items which deteriorate in the inventory  0,t1  is,

t1

DT  S   R (t )dt
0
t
 b c t  1 t  2 t  3  1
  a1t1  1 t12  1 t13  a1
2 3  1
 b1
 2
 c1 2
  a1  b1t  c1t dt
  3  0
 

 t  1 t  2 t  3 
 DT   a1  b1  c1  ___________________________________________(12)
  1  2  3

Total number of inventory carried during  0, t1  is

t1

H T   I (t )dt
0

t
1
 b c a b   2  2 c   3  3 
2
  3 
 1

   a1  t1  t   1 t12  t 2  1 t13  t 3  1 t1 1  t  1  1
  2
t1  t


 1
 3
t1  t 
  1   t dt      
0  

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(Neglecting the higher terms of  because   1 )

t1
 a1 2 b1 2 b1 3 c1 3 c1 4 a1  1 a1 t  2 
a
 11t t  t1  t1 t  t  t1 t  t  t1 t   
 2 2 6 3 12  1    1    2  
 b b  t  3
c  c  t  4 
   1 t1  2 t  1   1 t1  3 t  1  
  2    2     3   3    3    4  
  1  2  1  3  1  4

 a  t t t b1 2 t b1 t c1 3 t c1 t 
 1 1    1  a1    2   2  t1    1  2     3  3  t1    1  3     4  
 0
a1 2 b1 3 c1 4 a1 b  c 
 H T  t1  t1  t1  t  2  1
t  3  1
t   4 _____(13)
2 3 4    1     2  1    1     3 1    1     4  1
(Other terms involve higher power (2nd power)
of  )

Total shortage quantity during the interval  t1 , T  is

T
BT    I (t )dt
t1

1 2
 T 
    I (t )dt   I (t )dt   I (t )dt 
 t1 1 2 
  A  B  C 
1
A  I (t )dt
t1

1 
 b c 

   a1  t1  t   1 t12  t 2  1 t13  t 3  dt
2 3
  
t1  
2
B  I (t )dt
1
2
 b1 2 c 
   D t  a t 0 11 
2
 3

t1  12  1 t13  2 13  dt  
 
1

T
C  I (t )dt
2
T
 b1 2 c b c 
  a t 11 
2
   
t1  12  1 t13  2 13  a2 t  2 t 2  22  2 t 3  2 23  dt
3 2 3
   
 
2

 
 
 
  a t   a1 t 2   2  b1 t 2   b1  3  2t 3  c1 t 3   c1  4  3t 4  
  1 1 1 2 1 1
2
1 1  6
1 1  3
1 1
12
1 1 

    
 
  D0 2 b1 2 c1 3 
 BT      
2
2

2  1  a1t1  2  1  
2
 2
t1  1   2  1  
3
3
 
t1  21   2  1   ____(14)  
  
  b1 2 c  
  a1t1 T  2  
 2 3

t1  12   T  2   1 t13  213  T  2     
   
  a2 2 b2 3 b2 2 c2 4 2c2 3  
2
 3
  4

   2 T   2  6 T   2  2  2  T  2   12 T   2  3  2  T   2  
 
 

4. Method of Solution

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In order to solve our model we obtain our following results by using the following parameter values. Here, we apply
non-linear optimization technique for the solution of our problem where our target is to minimize the deteriorating
items in the entire inventory management system.
Values of input parameter:
  0.03 ,   1.1 , T=4 weeks, t 2  15 weeks, D0  5 units, a1  3 , a2  1 , b1  3.5 , b2  1.1 , c1  3.8 , c2  1.2 ,
1  5 and  2  8 .
Optimal Solution:
I (t )  1045.78 units, S  552.67 units, DT  11.45 units, H T  79.84 units, BT  26 units and t1*  7 weeks.

5. Conclusion
In this paper, we consider our model as a minimization problem. Here, we minimize the total number of deteriorating
items in the inventory. We have considered shortages in one case in our model but it can be extended in different
situation. We have considered our problem is in deterministic in nature but we may apply our model also in an
uncertain environment. Here, we use LINGO software as a method of solution but, for solution some other advanced
soft computing techniques may be applied in future.

References

[1] Aggarwal, S. P., “A Note on an Order-Level Inventory Model for a System with Constant Rate of Deterioration”,
Opsearch, 15, pp. 184-187, 1978.
[2] Chatterji, D. & Gothi, U.B, "Optimal EPQ Model with Weibully Distributed Deterioration Rate and Time Varying
IHC”, International Journal of Mathematics Trends and Technology, Vol. 25, pp. 16-26, 2015.
[3] Dave, U. and Patel, L. K., “(T, S) Policy Inventory Model for Deteriorating Items with Time Proportional Deman
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[4] W. A. Donaldson, “Inventory Replenishment Policy for a Linear Trend in Demand-an Analytical Solution”,
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[5] Goswami, A. and Chaudhuri, K. S., “Variations of Order-Level Inventory Models for Deteriorating Items”,
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[6] S. K. Goyal, D. Morin, F. Nebebe, “The Finite Horizon Trended Inventory Replenishment Problem with
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[8] G. C. Philip, “A Generalized EOQ Model for Items with Weibull Distribution Deterioration”, AIIE Transactions,
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[9] Shah, Y. K. and Jaiswal, M. C., “An Order-Level Inventory Model for a System with Constant Rate of
Deterioration”, Opsearch, 14, pp. 174-184, 1977.
[10] H. M. Wee, “Deteriorating Inventory Model with Quantity Discount, Pricing and Partial Backordering”,
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[11] H. M. Wee, S. T. Law, “Replenishment and Pricing Policy for Deteriorating Items Taking Account of the Time
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AUTHORS
Sandipa Bhattacharya is PhD research scholar from Department of Mathematics of National Institute of
Technology Durgapur, West Bengal, India. She received her B.Sc. degree in Mathematics from
Burdwan University, West Bengal, India and Masters in Computer Applications from West Bengal
University of Technology, (Presently MAKAUT) West Bengal, India. She obtained her M.Tech degree
in Operations Research from Department of Mathematics of National Institute of Technology Durgapur,
West Bengal, India. She has participated in many National and International Workshops and
Conferences in India. Her research interests include in Operations Research, Supply Chain Management, Soft
Computing and some other related fields in Applied Mathematics.

Volume 8, Issue 12, December 2019 Page 32

International Journal of Application or Innovation in Engineering & Management (IJAIEM)
Web Site: www.ijaiem.org Email: editor@ijaiem.org
Volume 8, Issue 12, December 2019 ISSN 2319 - 4847

Dr. Seema Sarkar (Mondal) is Professor of Department of Mathematics of National Institute of

Technology Durgapur, West Bengal, India. She received her B.Sc. degree in Mathematics from
Presidency College (Presently Presidency University) Presidency College (Presently Presidency
University) Kolkata and M.Sc , M.Phil & PhD degree in Applied Mathematics from University of
Calcutta, Kolkata. Her research interests include Geophysics, Operations Research and some other
related fields. She has authored/coauthored more than 25 publications and received 'Best Paper Award'
in International Conference on ‘Information and Management Science’ in China during August, 2010. She had also
received “National Scholarship” during Secondary Examination. Five students have completed their PhD and awarded
doctorate degree under her supervision and 8 more are pursuing their doctoral study. She is a Life Member of 'Calcutta
Mathematical Society' and 'Operational Research Society of India', Kolkata Chapter.

Volume 8, Issue 12, December 2019 Page 33