An EOQ Model For Deteriorating Items with Varying Different Time-Dependent Demand Rates

Abstract

In this work, the Economic Order Quantity (EOQ) inventory model for deteriorating products has been expanded. A two-component type deterministic pattern is considered here. It is stable in the first part of the cycle due to the introduction of items into the system, and then in the second half of the inventory cycle, it becomes a quadratic function of time. Here the deterioration rate of the items is constant and partial backlogging and shortages are prohibited here. To determine the absolute period of the cycle, optimum cost as well as initial order quantity, the theoretical and mathematical expressions are developed. To calculate the above quantities a simple algorithm is used. The results can be defined by two numerical examples given at the end of this paper. Finally, a sensitivity study based on different parameters along with decision variables is derived.