Optimal ordering policies of inventory model for deteriorating items having generalized Pareto lifetime

In this communication, we develop and analyse an inventory model with the assumption that the lifetime of the commodity is random and follows a generalized Pareto distribution. It is also assumed that the demand is a function of stock and the money value is subject to inflation. Using the differential equations, the instantaneous state of inventory is derived. With suitable cost consideration, the total cost function is obtained. Minimizing total cost function, the optimal ordering quantity and cycle length are obtained. This model is useful in practical situations arising at places like the food and vegetable markets, oil industry and photochemical industry.