Periodic review inventory policy for non-instantaneous deteriorating items with time dependent deterioration rate

Abstract

The paper studies a periodic review inventory model with no shortages and different demand rates during pre- and post- deterioration periods. Deterioration of units start after a fixed time interval, and the deterioration rate is time dependent. The model determines the optimal reorder interval and the optimal order quantity so as to minimize the total cost per unit length of an inventory cycle. An extension of the model to include price discount has been further considered. Numerical examples are presented to illustrate the model and a sensitivity analysis is also reported.