DETERMINISTIC MODELS OF PERISHABLE INVENTORY WITH STOCK-DEPENDENT DEMAND RATE AND NONLINEAR HOLDING COST

This paper deals with an extended EOQ-type inventory model for a peris hable product where the demand rate is a function of the on-hand inven tory. The traditional parameters of unit item cost and ordering cost a re kept constant; but the holding cost is treated as (i) a nonlinear f unction of the length of time for which the item is held in stock, and (ii) a functional form of the amount of the on-hand inventory. The ap proximate optimal solution in both the cases are derived. Computationa l results are presented indicating the effects of nonlinearity in hold ing costs. (C) 1998 Elsevier Science B.V.