INVENTORY MODEL WITH VARIABLE RATE OF DETERIORATION

Operations Research is the scientific knowledge through interdisciplinary team effort for the purpose of determining the best utilization of limited resources. Nowadays operations research is having more applications in engineering, economics, business management, agriculture etc. Operations research utilizes various techniques like linear programming, integer programming, inventory control, queuing theory game theory, goal programming, non linear programming’s. Inventory control deals with determining the level of a commodity that a business must maintain to ensure smooth operation. The basis for the decision is a model from holding too much inventory against the penalty cost resulting from inventory shortage .the principal factor affecting the solution is the nature of the demand which is either deterministic or probabilistic. In real life, demand is usually probabilistic. But in some cases the simpler deterministic approximation may be acceptable. Inventory is defined as any idle resource of enterprise. It is a physical stock of goods kept for future use. In a factory, the inventory may be in the form of raw materials, spare parts, semi-finished goods etc. An inventory may also include furniture, machinery.