An EOQ model for Inventory System dependent upon on hand inventory without shortages

Abstract

The inventory management in supply chain remain crucial for the proper availability of all goods. The mathematical and computer algorithms are implemented to channelize the distribution and availability of stock at particular time and specific point of chain supply. The cumulative impact of all algorithms and models describes the physical stock availability under different situations arising because of high demand, variable stock, distributed inventory and all other alike factors. In this paper we present a model to study a situation where the demand rate declines along with stock level down. The demand rate is different for different situations i.e, the demand rate is when  and  when  where  is the inventory level. Numerical examples and sensitivity analysis are presented to illustrate the model developed.