Model development for deteriorating inventory in material requirement planning systems

The purpose of this study is to develop an optimal replenishment policy for deteriorating inventory in a single-level MRP system. The analysis in this study is based on the approaches by the Wagner–Whitin, the Silver–Meal and the least-unit-cost methods. Two numerical examples are provided to illustrate the theory of the problem. From the numerical analysis it is demonstrated that the order quantity and the total relevant cost are significantly influenced by the varying rate of deterioration.