Inventory model with multivariate demands in different phases with customer returns and inflation (Q2204222)

Summary: This paper presents an EOQ model of deteriorating item with the demand depending on three significant factors like inventory level, time and price. Shortages are allowed and partially backordered with a time dependent rate. The concept of customer returns as a function of price and demand has been included. A profit function is formulated and maximised for the considered system. A numerical example has been given to illustrate the model and sensitivity analysis is performed in order to examine the impact of various parameters on the optimal policy.