DETERIORATING INVENTORY POLICY FOR ITEMS WITH POWER DEMAND AND VARIABLE HOLDING COST CONSIDERING SHORTAGES

Abstract

In this paper, An EOQ model for a linear deteriorating inventory policy for items with power demand pattern is presented. Holding cost is assumed to be time-dependent. Shortages are allowed and partially backlogged. The paper aims at minimising the total inventory cost by optimising the scheduling period and optimal ordering quantity. A numerical example is presented to establish the applicability of the model and sensitivity analysis carried out based on the example to know the effect of changes in various parameters in the system.