An EPQ model for delayed deteriorating items with quadratic demand and linear holding cost

Abstract

In this paper, an EPQ model for delayed deteriorating items is presented, where the demand before deterioration sets in is assumed to be time dependent quadratic demand and the holding (carrying) cost is assumed to be linearly dependent on time. Three stages are considered as follows: (1) production build up period, (2) period before deterioration starts and, (3) period after deterioration sets in. There is no demand during production build up period and the demand before deterioration begins is assumed to be quadratic time dependent while that after deterioration sets in is assumed to be constant. It is also assumed that shortages are not allowed. The purpose of this paper is to investigate the optimal set of production rates that minimizes the total inventory cost per unit time, the best cycle length and the economic production quantity. A numerical example is given to illustrate the applicability of the model and sensitivity analysis carried out on the example to see the effect of changes on some system parameters.