An order level EOQ model for deteriorating items in a single warehouse system with price depended demand and shortages
نویسندگان
چکیده
In this paper a deterministic inventory model is developed deterioration rate is time proportional. Demand rate is a function of selling price. Deterioration rate, inventory holding cost and ordering cost are all of function of time. The planning horizon is infinite. The optimum replacement policy and decision rule, which minimizes the total cost, is developed. In this study an order level inventory model for deteriorating items with single warehouse is developed where shortages are taken into consideration and it is completely backlogged. The results are illustrated with the help of numerical example. The sensitivity of the solution with the changes of the values of the parameters associated with the model is discussed.
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