Demand is the major factor for highly processed food inventory in food industries. The highly processed food demand size may be static or dynamic from time to time. In order to follow the situation and to deal with the real-world problem, the time-dependent inventory model with exponential declining demand for shifting deterioration items in food industries is considered in this study. The purchasing cost, ordering cost, holding cost, deterioration cost, deterioration rate, shortage cost, and deterioration initial point are constant. This paper also considers the shifting deterioration idea which separates the pre-deterioration and deterioration period with exponential declining demand and the shortage period with constant demand. During the deterioration period, the inventory will be decreasing faster due to the deterioration until it reaches its shortage initial point. Then, during the shortage period, there will be no backlogging to reflect the actual scenes in the real life. This study aims to investigate the Economic Order Quantity (EOQ), maximum shortage units, and total cost per unit per unit time of the proposed model. The main focus of this work is to get the optimal total cost per unit per unit time for food industries. Finally, the numerical examples are provided for the mathematical function to illustrate the solution procedure and sensitivity analysis of the optimal solution with respect to parameters is carried out.

Demand is the major factor for highly processed food inventory in food industries. The highly processed food demand size may be static or dynamic from time to time. In order to follow the situation and to deal with the real-world problem, the time-dependent inventory model with exponential declining demand for shifting deterioration items in food industries is considered in this study. The purchasing cost, ordering cost, holding cost, deterioration cost, deterioration rate, shortage cost, and deterioration initial point are constant. This paper also considers the shifting deterioration idea which separates the pre-deterioration and deterioration period with exponential declining demand and the shortage period with constant demand. During the deterioration period, the inventory will be decreasing faster due to the deterioration until it reaches its shortage initial point. Then, during the shortage period, there will be no backlogging to reflect the actual scenes in the real life. This study aims to investigate the Economic Order Quantity (EOQ), maximum shortage units, and total cost per unit per unit time of the proposed model. The main focus of this work is to get the optimal total cost per unit per unit time for food industries. Finally, the numerical examples are provided for the mathematical function to illustrate the solution procedure and sensitivity analysis of the optimal solution with respect to parameters is carried out.

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