The General Research Of Inventory Management About Deteriorating Items

In modern enterprise, various goods in stock tie up great fund. So it is important to control the storage and weigh the inventory costs with inventory benefits.The economic ordering quantity EOQ model is simple and basic for stock decision, but seldom situation can satisfy its suppose. It is far from meeting the requirements of modern inventory management. In the last several decades, the development of classic stock theories is changing with each passing day. Many research results have been published one after another. Inventory model for deteriorating items is one important branch of the researches. Deterioration is a common phenomenon in daily life and the vast majority of cases are inevitable. So for those deteriorating items, it is important for enterprises to establish a more reasonable inventory decision to reduce its losses. And it is also necessary to study the inventory management system of deteriorating items and establish a more optimal inventory control model which is close to the reality.Market demand is an important factor in determining inventory management strategy. When demand is certainty, we can divide it into several sets according to difference of market demand: (1) Market demand rate is fixed;(2) Market demand rate is a function of time;(3) Market demand rate is a function of price (4) Market demand rate is a function of stocks, and so on. In order to make the inventory model closer to reality and with higher availability, in addition to researches above, we made a further expansion of the model: market demand rate is a function of both time and stocks. According to this suppose we establish the inventory model of deteriorating items.In many articles product rate is infinite. But in fact, because of various constraints, it is not practical. In this article, we study the inventory strategy of deteriorating items with finite product rate.Another important factor which affects the inventory strategy is deterioration rate. In many existing articles the deterioration rate is supposed to be constant. But there are few articles assume that deterioration rate changes. So it needs to be further expanded. In this article we will do some research about the description of deterioration rate and according to it we establish inventory models of deteriorating items.