An inventory system of ameliorating items for price dependent demand rate

This study is concerned with the development of inventory model for ameliorating items. These items include the fast growing animals like duck, pigs, broiler, etc. in poultry farm, high breed fishes in bhery (pond), etc. When these items stay at farm or bhery or in the sales counter or distribution centre, the stock increases due to growth and decreases also due to death. As a result, both amelioration and deterioration effect are seen simultaneously for this type of inventory system. In this paper, we have developed an instantaneous replenishment inventory model of these ameliorating items for prescribed time period. The rate of amelioration follows the Weibull distribution and the demand rate is assumed to be a function of selling price of an item. Shortages are not allowed. The salvage values of deteriorated units due to death,of such items and the cost for feeding the life stocks are taken into account. The model is numerically illustrated with the demand rate dependent linearly on the selling price of the item. Finally, the effect of amelioration as well as the deterioration on an inventory policy has been studied. The sensitivity of the average profit with respect to the amelioration parameters has also been presented with the help of Analysis of Variance method. (C) 2003 Elsevier Ltd. All rights reserved.