Inventory Model_Non-constant demand rate
- Author:
- Monark Trivedi
Inventory model with a non-constant demand rate: Low at start of cycle, high at end.
Let us consider a case in which in each cycle the demand is low at the start and high at the end. Let the function I(t) represent the size of the inventory as a function of time and let q represent the size of each order.
Assuming no shortages, here is an applet with a simple continuous function which describes it and uses it to compute the average level of inventory in each cycle.
For the sake of simplicity of this applet, Following conventions are taken:
1. Demand rate (D) is between 100 and 500 with an increment of 20 and can be changed by moving the slider.
2. Quantity of stock ordered (q) is quarter of the demand (D)
3. Time horizon (T) is taken as 1 year.
4. It is quantity (q) against time (t) graph.