FACTORS IN DETERIORATING INVENTORY MODELS CONTRIBUTION OF SOME SCIENTIFIC AND MATHEMATICAL APPROACH

Abstract

Deteriorating inventory models address the challenges associated with goods that lose value over time due to factors such as spoilage, obsolescence, and physical degradation. These models are crucial in industries dealing with perishable goods, electronics, fashion items, and pharmaceuticals. This research explores the scientific and mathematical contributions to managing deteriorating inventory, focusing on the integration of advanced techniques to optimize inventory levels and minimize waste. Mathematical approaches, such as Economic Order Quantity (EOQ) models adapted for deteriorating goods, and optimization techniques like linear programming, dynamic programming, and Markov decision processes, offer systematic solutions to inventory management. Scientific methods, including operations research, statistical modeling, and computational intelligence, enhance forecasting, demand prediction, and the dynamic adjustment of inventory levels based on deterioration rates. Additionally, supply chain integration through real-time data and advanced technologies such as AI and IoT further refines inventory strategies. The paper highlights how these approaches contribute to improving efficiency and reducing costs in deteriorating inventory management.