OPTIMAL TIME-VARYING LOT-SIZING MODELS UNDER INFLATIONARY CONDITIONS

This paper deals with the inventory replenishment problem over a fixed planning horizon for items with linearly time-varying demand and unde r inflationary conditions. We develop models and optimal solution proc edures with and without shortages. We do not put any restriction on th e length of the replenishment cycles making the proposed methods the f irst optimal solution procedure for this problem. Using four examples, we illustrate the proposed solution procedures and study the effect o f changing the inflation and discount rates on the optimal replenishme nt schedules.