Economic ordering policy for deteriorating items over an infinite time horizon (Q1087131): Difference between revisions

A total cost model is presented for the inventory problem of deteriorating items. A constant fraction of on hand inventory at the beginning of a period deteriorates during the period. The demand for the items during a period is supplied at the end of the period. However, shortages accumulated during a scheduling period are supplied at the start of the next scheduling period. An approach is suggested for determining economic ordering policy for the case of time varying demand and a search procedure is developed when demand is constant in each period.