An Ordering Policy with Time-Proportional Deterioration, Linear Demand and Permissible Delay in Payment
In classical inventory models, demand is considered as constant, while in the practical cases the demand changes with time. This paper focuses an economic order quantity (EOQ) model for a deteriorating item with time-proportional deterioration rate and time-dependent linear demand rate under permissible delay in payment. The purpose of this study is to find the EOQ for minimizing the total variable cost. Finally, numerical examples are cited to illustrate the model.
KeywordsDeteriorating item EOQ Linear demand Permissible delay in payment Time-proportional deterioration
The authors are most grateful to two anonymous referees for their constructive comments.
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