Finite horizon EOQ model for non-instantaneous deteriorating items with probabilistic deterioration and partial backlogging under inflation (Q2204220)

Summary: This paper deals with an economic order quantity (EOQ) model for non-instantaneous deteriorating items with price and advertisement dependent demand pattern under the effect of inflation and time value of money over a finite planning horizon. In this model, we have considered three types of continuous probabilistic deterioration function to find the optimal total cost. Also, shortages are allowed and partially backlogged. The backlogging rate is dependent on the waiting time for the next replenishment. This paper aids the retailer in minimising the total inventory cost by finding the optimal interval and the optimal order quantity. An algorithm is designed to find the optimum solution of the proposed model. Numerical examples are given to demonstrate the results. Also, the effect of changes in the different parameters on the optimal total cost is presented and the implications are discussed in detail.