An inventory model for deteriorating items with linear trend demand under the condition of permissible delay in payments

Abstract

In this article, we consider the inventory replenishment problem with varying rate of deterioration and condition of permissible delay in payments, in which the restrictive assumption of constant demand rate is relaxed, and take a linear trend in demand into consideration. An algorithm is developed to determine the optimal replenishment cycle. We also provide a special case to illustrate the proposed model. Finally, a numerical example is presented to illustrate the optimization procedure. Sensitivity analysis of the parameter value is also carried out.