AN EOQ MODEL FOR DETERIORATING ITEMS WITH A LINEAR TREND IN DEMAND AND SHORTAGES IN ALL CYCLES

We consider here the inventory replenishment problem over a finite tim e horizon for a deteriorating item with a linear trend in demand, equa l replenishment cycles and shortage in every cycle. The reorder number , the interval between two successive reorders and the shortage interv als are all determined in an optimal manner so as to minimize the aver age system cost. The advantage of allowing shortage in all cycles is i llustrated with a numerical example.