Inventory Management Systems with Hazardous Items of Two Parameter Exponential Distribution
Problem statement: An exponentially decaying inventory was first developed by[10] The certain commodities were observed to shrink with time by a proportion which can be approximated by a negative exponential function of time. Here, the novelty we took into consideration was that a constant hazardous rate followed by the two parameter exponential distribution. Approach: We studied the inventory system with two parameter exponential distributed hazardous items in which production and demand rate were constant. Results: The mathematical model was developed with an exponential distribution hazardous item to obtain the total cost per unit time of an inventory system. It was illustrated with the help of numerical example. The inventory controlled systems in terms of first order differential equations were solved numerically. The effect of changes in the model parameters on decision variables and average total cost of an inventory system were studied through numerical example. Conclusion: This study minimized the total cost for constant hazardous rate of exponential distribution.