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EOQ model with shortages for products with controllable deterioration rate and time dependent demand and inventory holding cost
Subject Area:
Physical Sciences and Engineering
Abstract:
In this paper, we have developed a deterministic inventory model for deteriorating items in which demand rate and holding cost are quadratic and linear function of time. During deterioration period, deterioration rate can be controlled using preservation technology (PT). In the model considered here, deterioration rate is constant, backlogging rate is variable and depends on the length of the next replenishment. Shortages are allowed and backlogged. An analytic solution which optimizes the total cost is derived. The derived model is illustrated with a numerical example.
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