Replacement Srategy for Depriciating Stock Considering Stockouts and Time Dependent Demand
Shradha Goyal1, Rudresh Pandey2
1Dr. Shradha Goyal, Assistant Professor, Jagannath International Management School, New Delhi, India.
2Dr. Rudresh Pandey, Professor, Department of Management Studies, ABES Engineering College, Ghaziabad, U.P., India.
Manuscript received on November 20, 2019. | Revised Manuscript received on November 28, 2019. | Manuscript published on 30 November, 2019. | PP: 6721-6724 | Volume-8 Issue-4, November 2019. | Retrieval Number: D8608118419/2019©BEIESP | DOI: 10.35940/ijrte.D8608.118419
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: Researchers, till now, have faced only 2 variants in demand – time variations i.e. linear and exponential variations. A linear variation shows constant change in rate of demand per unit of time for a product, which is a virtual assumption and will rarely be found in any real industry. To exemplify, the demand for the latest technology spare parts, chips, computers etc increases rapidly contrary to obsolete technology and routine gadgets. Some researchers have also termed these variations in exponential category as increasing or decreasing function with respect to per unit of time. From a researcher view an exponential rate of variation is very high to get actually satisfied be demand in actual market. Hence, a realistic approach matching with the researched theories and the actual market conditions is neither linear nor exponential but a quadratic variation in demand and time showing growth in both up and down directions of demand. The problem is solved and formulated in a model form and elaborated using sensitivity analysis.
Keywords: Linear, Exponential, Inventory, Demand, Quadratic Function.
Scope of the Article: Demand.