Table of Contents
Journal of Industrial Engineering
Volume 2014 (2014), Article ID 605178, 14 pages
http://dx.doi.org/10.1155/2014/605178
Research Article

An EOQ Model for Phase Inventory with Induced Demand and Periodic Cycle Time

1Department of Mathematics, Midnapore College, Vidyasagar University, Medinipur, West Bengal 721101, India
2Department of Mathematics, Bhangar Mahavidyalaya, South 24 Parganas, West Bengal 743502, India
3Department of Mathematics, Indian Institute of Technology, Kharagpur 721302, India

Received 27 May 2014; Revised 17 August 2014; Accepted 25 August 2014; Published 16 September 2014

Academic Editor: Eleonora Bottani

Copyright © 2014 Sujit Kumar De et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

This paper deals with a stock flow of an inventory problem over induced demand. The inventory is consumed through “core customer” or chain marketing system in an induced environment (inductance) to exhaust all the items of the stock inventory in an indefinite time. The demand rate is depicted due to induced factor which is generated from the same inventory presented nearby. The inventory cycle time is split into several periodic times due to oscillatory feature of the inventory which is called phase inventory. Considering uniform demand, this cycle time splits into two basic parts, namely, “first shift” (phase) and “second shift” (phase). Since the process dampens over time, so the whole inventory will exhaust after few periods. A cost function consisted of inventory cost, setup cost, and loss for induced items is minimized to obtain optimal order quantity and replenishment time. The multivariate lagrange interpolation (MLI) over the average values of the postsensitivity analysis is developed here. Finally, graphical illustrations are made to justify the model.