An EOQ model for deteriorating items with shortages and a linear trend in demand. (English) Zbl 0741.90015

Goswami, Adrijit; Chaudhuri, K. S.

J. Oper. Res. Soc. 42, No. 12, 1105-1110 (1991).

Summary: We consider here the inventory replenishment policy over a fixed planning period for a deteriorating item having a deterministic demand pattern with a linear trend and shortages. The number of reorders, the interval between two successive reorders and the shortage intervals over a finite time-horizon are all determined in an optimal manner so as to keep the average system cost to a minimum. One numerical example illustrates how the procedure works. The counterpart of this example in the no-shortage case is also given. The effects of variation in the deterioration rate on the optimal policy are also indicated with numerical examples.

MSC:

90B05

Inventory, storage, reservoirs

Keywords:

EOQ models; linear trends in demand; inventory replenishment policy; fixed planning period; deteriorating item; deterministic demand pattern