Economic design of an inventory policy for non-instantaneous deteriorating items under permissible delay in payments (Q847228)

This article presents an economic order quantity model to determine the optimal replenishment policy so that the total inventory cost is minimized. The paper begins with an overview of the literature and a summary of the notation and key assumptions of the model. In the third section the authors present the proposed model, which includes a deteriorating inventory and the possibility to backlog shortages. A long series of theoretical results are presented with proof, including the necessary and sufficient conditions for the optimal solutions. This interesting article concludes with a proposed algorithm, a section containing the results of numerical experimentation, a section on the managerial implications and conclusions resulting from the model and a list of relevant references.