TIME VARYING INCREASING DEMAND INVENTORY MODEL FOR DETERIORATING ITEMS

Abstract

An inventory model for deteriorating items is considered in which demand increases with respect to time, deterioration rate, inventory holding cost and ordering cost are all continuous functions of time. Shortages are completely backlogged. The planning horizon is finite. The optimal replenishment policy and decision rule, which minimizes the total cost, is developed. A numerical example is given to illustrate the derived model. Sensitivity analysis is presented for the model.