Study of Memory Effect in an Inventory Model with Linear Demand and Salvage Value

摘要

In this paper, we have analyzed a memory dependent inventory model with linear type demand rate and time-varying holding cost as well as salvage value. Shortage is not allowed for that model. Memory means it depends past state of the process not only current state of the process. Two type memory indexes have been established (i) differential memory index corresponding fractional order derivative (ii) integral memory index corresponding fractional order integration. The influence of memory effect corresponding differential memory index is more active compared to the integral memory index. The above statement has been justified by the numerical example. The sensitivity analysis is carried out to find out critical inventory parameters for the decision maker.