Inventory Model: Deteriorating Items with Time-Dependent Deterioration Rate for Quadratic Demand Rate With Unit Production Cost and Shortage

Abstract

In this paper, an order level inventory unit production system for deteriorating items with a quadratic demand is developed. It is assumed that shortages in inventory are permitted and are completely backlogged. The finite production rate is proportional to the time dependent demand rate and deterioration rate is time proportional. The unit production cost is taken to be inversely related to the demand rate. Sensitivity of the decision variable to changes in the parameter values is examined and numerical example is presented to illustrate the model is developed. Keywords - Deterioration; Inventory model; Quadratic demand rate; Shortage;