A Note on an Order Level Inventory Model with Varying Two-Phased Demand and Time-Proportional Deterioration

Abstract

Th e main purpose of this paper is to generalize the effect of two-phased demand and variable deterioration within the EOQ (Economic Order Quantity) framework. The rate of deterioration is a linear function of time. The two-ph a sed demand function states the constant function for a certain period and the quadratic function of time for the rest part of the cycle time. No shortages as well as partial backlogging are allowed to occur. The mathematical expressions are derived for determining the optimal cycle time, order quantity and total cost fu nction. An easy-to-use working procedure is provided to calculate the above quantities. A couple of numerical examples are cited to explain the theo retical results and sensitivity analysis of some selected example s is carried out.