A Deterministic Inventory Model with Cubic Demand and Infinite Time Horizon with Constant Deterioration and Salvage Value

Varsha Sharma, Anil Kumar Sharma

Abstract: In this paper we consider an inventory model for deteriorating products having a cubic demand which is a function of time, here the deterioration is considered as constant. The salvage value is used for deteriorated items in the system. This model is developed to find the total cost of the inventory system. Suitable numerical example and sensitivity analysis also discussed (at the end of the paper, we compare the solution of the cubic model with that of the Quadratic model as well as linear model) Retarded decline model and accelerated decline model. The optimum total cost and total order quantity has been calculated in each case. We see that behaviour of these models is almost similar.

Keywords: Inventory, Quadratic demand, Deteriorating items, Salvage value & Optimum cost