AN EOQ MODEL FOR DETERIORATING ITEMS WITH TIME-VARYING DEMAND AND COSTS

A generalized EOQ model for deteriorating items is considered here in which the demand rate, deterioration rate, holding cost and ordering c ost are all assumed to be continuous functions of time. Shortages are also allowed and are completely backlogged. The planning horizon is fi nite and the replenishment periods are assumed to be constant The opti mal replenishment policy and the decision rule which minimizes the tot al system cost are derived A numerical example is given to illustrate the developed model. Sensitivity analysis is also presented for the gi ven model.