An optimal policy for deteriorating items with time-proportional deterioration rate and constant and time-dependent linear demand rate

• Main Authors: Trailokyanath Singh, Pandit Jagatananda Mishra, Hadibandhu Pattanayak
• Format: Article
• Language: English
• Published: Islamic Azad University 2017-04-01
• Series: Journal of Industrial Engineering International
• Subjects: Constant and time-dependent linear demand rate; Deteriorating items; EOQ; Time-proportional deterioration rate.
• Online Access: http://link.springer.com/article/10.1007/s40092-017-0198-6

Abstract In this paper, an economic order quantity (EOQ) inventory model for a deteriorating item is developed with the following characteristics: (i) The demand rate is deterministic and two-staged, i.e., it is constant in first part of the cycle and linear function of time in the second part. (ii) Deterioration rate is time-proportional. (iii) Shortages are not allowed to occur. The optimal cycle time and the optimal order quantity have been derived by minimizing the total average cost. A simple solution procedure is provided to illustrate the proposed model. The article concludes with a numerical example and sensitivity analysis of various parameters as illustrations of the theoretical results.