An inventory model of deteriorating items with lot-size dependent replenishment cost and a linear trend in demand

This paper presents an inventory model for deteriorating items over a finit e time horizon where the demand increases linearly with time. The method is developed by assuming that the successive replenishment cycle lengths are the same. Many O.R. scientists/researchers obtained an optimal replenishmen t schedule where the replenishment cost is constant in each cycle length ov er the finite time horizon. In this paper, we relax the assumption of fixed replenishment cost. The replenishment cost per replenishment is taken to b e linearly dependent on the lot-size of that replenishment. Shortages are a llowed and are fully backlogged. As a special case, the results for the mod el without shortages are derived. Finally, two numerical examples are prese nted to illustrate the model. (C) 1999 Elsevier Science Inc. All rights res erved.