Inventory systems for deteriorating items with shortages and a linear trend in demand-taking account of time value

This paper derives an inventory model for deteriorating items with the dema nd of linear trend and shortages during the finite planning horizon conside ring the time value of money. A simple solution algorithm using a line sear ch is presented to determine the optimal interval which has positive invent ories. Numerical examples are given to explain the solution algorithm. Sens itivity analysis is performed to study the effect of changes in the system parameters. (C) 2001 Elsevier Science Ltd. All rights reserved.