An EOQ Model for Deteriorating Items with Shortages and a Linear Trend in Demand

Adrijit Goswami · Kripasindhu S. Chaudhuri

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Supply Chain and Inventory Management Sustainable Supply Chain Management Optimization and Mathematical Programming

Abstract

We consider here the inventory replenishment policy over a fixed planning period for a deteriorating item having a deterministic demand pattern with a linear trend and shortages. The number of reorders, the interval between two successive reorders and the shortage intervals over a finite time-horizon are all determined in an optimal manner so as to keep the average system cost to a minimum. One numerical example illustrates how the procedure works. The counterpart of this example in the no-shortage case is also given. The effects of variation in the deterioration rate on the optimal policy are also indicated with numerical examples.

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References

1977Inventory Replenishment Policy for a Linear Trend in Demand—An Analytical Solution 1981(T, Si) Policy Inventory Model for Deteriorating Items with Time Proportional Demand 1984On (T, Si) Policy Inventory Model for Deteriorating Items with Time Proportional Demand

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