An Optimal Policy with Quadratic Demand, Three-Parameter Weibull Distribution Deterioration Rate, Shortages and Salvage Value

The present paper focuses an optimal policy of an inventory model for deteriorating items with generalized demand rate and deterioration rate. Shortages are allowed and partially backlogged. The salvage value is included into deteriorated units. The main objective of the model is to minimize the total cost by optimizing the value of the shortage point, cycle length and order quantity. A numerical example is carried out to illustrate the model and sensitivity analyses of major parameters are discussed.