An Inventory Model with Periodic Demand, Constant Deterioration and Shortages

Abstract

In this paper, an inventory model with periodic demand, constant deterioration and shortages has been proposed. The periodic demand rate increases by a constant percentage during each time interval. The proposed model will be constrained binomial geometric programming model with constant deterioration and shortage. This implies that for any exponentially growing quantity, the larger the increase in quantity, the faster it grows. A numerical analysis of the proposed model has been presented. Production rate is considered as finite and approximation procedure is used to solve the model.

Keywords: Deterioration, shortage, Inventory Control, Demand Rate, periodic, Exponential Growth.