An Inventory Model With Inflation, Time-discounting, Shortages Dependent On Time

With the acceleration of the globalization process, inventory control theoryare widely used in the actual, which not only saves economic cost but also bringshuge benefits to the community. The study field also extended fromdeterministic and single-stage inventory to stochastic and multi-level inventorymodel Inventory optimization and parameter sensitivity analysis is the importantcontents of the inventory study. With IT, we can conduct a research in-depthwhen inventory system under the influence of multi-parameter.In this paper, we consider the following factors of Economic quantitiesmodel: inflation and the time value of money, the inventory system’s optimalorder quantity and shortage-time. The main contents as follows:1) under the conditions of inflation, the time value of money, we prove thatEconomic quantities model has optimal cost.2) The demand rely on real-time inventory, it allow shortages, the demand isdependent on time during shortages, without considering the deterioration. Weconsider the internal and external inflation，time value in the model. By studyingthe best order quantity and shortage-time, we explore the influence of variousparameters on the optimal value.