An Integrative Analysis of Deterioration and Backlogging Strategies in Modern Inventory Management: A Synthesis of Demand Dynamics
Keywords:
Decaying Inventory, Trapezoidal Demand, Fractional Backlogging, Price Sensitivity, Inventory Modeling, EOQ.Abstract
The dynamic demand conditions of perishable goods that need to be managed by inventory management necessitate complex mathematical modeling to make the operations efficient. In this paper, an integrative model of inventory systems that experience wear and demand fluctuations is created. Combining trapezoidal and price-sensitive demand dynamics with the usage of fractional backlogging mechanisms, we develop an abstracted cost minimization model. The governing differential equations in the inventory levels are obtained and an example is used to show the effect of the rates of deterioration and the rate of backlogging on the overall costs of the system. The findings highlight the importance of matching the replenishment policies with the physical product depreciation and consumer waiting to attain economic sustainability in the supply chain context.
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