An economic order quantity model for deteriorating items with time-dependent deterioration rate, demand rate, unit production cost and shortages

An order level inventory model is developed for a deteriorating item with a linear trend in demand. It is assumed that the finite production rate is p roportional to the time-dependent demand rate and the deterioration rate is time proportional. The unit production cost is taken to be inversely relat ed to the demand rate. The model is first solved allowing no shortage in in ventory. The case of inventory shortage is discussed next. The results are illustrated with the help of numerical examples. The sensitivity of the sol ution to changes in the values of the parameters associated with the model is discussed.