On discrete-in-time deterministic inventory systems for deteriorating items with finite replenishment bate

Abstract

Three inventory systems, viz. the EOQ, the order-level and the order-level lot-size systems, are considered for deteriorating items, in which the replenishment rate is finite and uniform, demand is deterministic and the deterioration is a constant fraction of the on hand inventory. The mathematical models-of the systems are continuous in units but are discrete in time and assume instantaneous delivery. The EOQ does not allow shortages, the order-level allows shortages but assumes a prescribed scheduling period whereas the order-level lot-size does allow shortages but does consider the scheduling period as being a prescribed constant. For the EOQ an approximation the order-level lot size, a search procedure is developed for finding optimal solution. All the results are supported by numerical examples.