An Inventory Cost Minimization Model with Variable Demand Rate

Sandeep Kumar

Abstract: This paper develops an inventory model for non-deteriorating items under a time-dependent demand pattern. The demand rate varies over time and directly influences the inventory level throughout the planning period. The model assumes that shortages are not permitted, ensuring continuous availability of products to meet customer requirements. Ordering cost and holding cost are incorporated into the analysis to evaluate the overall inventory cost. Mathematical expressions are formulated to determine the optimal inventory policy that minimizes the total cost of the system. Numerical examples and graphical representations are presented to validate the model and examine the effects of key parameters on the total cost. The results demonstrate that proper control of inventory parameters can significantly reduce operating costs and improve the efficiency and profitability of inventory management systems.

Keywords: Inventory, demand, holding cost, ordering cost

How to Cite?: Sandeep Kumar, "An Inventory Cost Minimization Model with Variable Demand Rate", Volume 15 Issue 6, June 2026, International Journal of Science and Research (IJSR), Pages: 1558-1564, https://www.ijsr.net/getabstract.php?paperid=SR26623162752, DOI: https://dx.doi.org/10.21275/SR26623162752

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