An Inventory Model for Deteriorating Item with Time Dependent Demand and Permissible Delay in Payment Under Inflation

Abstract

In this paper, we have developed an inventory model for deteriorating items with timedependent demand considering the inflation effect on the system. Shortages if any are allowed and partially backlogged with a variable rate dependent on the duration of waiting time up to the arrival of the next lot. The corresponding problem has been formulated as a nonlinear constrained optimization problem, all the cost parameters are crisp valued and solved. A numerical example has been considered to illustrate the model and the significant features of the results are discussed. Finally, based on these examples, sensitivity analyses have been studied by taking one parameter at a time keeping the other parameters as same.