Inventory of damageable items with variable replenishment and unit production cost via simulated annealing method

In this paper, a deterministic inventory model of a damageable item is developed with variable replenishment rate and unit production cost. Here replenishment rate and unit production cost are dependent on demand. Demand and damageability are stock dependent. This dependency may be linear or non-linear. The optimum inventory level is evaluated by the profit maximization principle through SA algorithm. The model is illustrated numerically with different forms of demand and damage functions.