The Inventory Model With Variable Demand Rate

Theory of storage is one branch of the operational research.The deterministic inventory models are important components of the inventory theory,and they have been deep and widely studied since the EOQ model has been presented. By far ,a lot of classic theories have been put forward. At the same time ,because of its maturation in theory and convenience in uses, the deterministic inventory theory has been well used in practice , and has provided effective theoretic guidance to the enterprises for saving costs in their running proceses.Based on the research production drawn in the past, this paper investigates a kind of inventory model with inverse proportional demand rate. To make up the shortage of using polynomial function to fit the demand, inverse proportional function is used, and mathematic models we propose in this paper under different inventory conditions would have a wide use in practice. Conditions of the objective function when it reaches its optimal quantity and its analytic expression are presented firstly and then proved by using the mathematical induction. We also present inventory models for deteriorating items with price sensitive demand. Effects of deteriorating rate on sale price, the total profit per unit time, order quantity and the length of inventory cycle are discussed. The illustration of the price model declare when the deteriorate rate increased, the retails can decrease their loss by reducing order quantity and shortening the length of order period. The changeable is evidence, and the modle does consist with the reality.