An optimal policy for deteriorating items with time-proportional deterioration rate and constant and time-dependent linear demand rate


1 Department of Mathematics, C. V. Raman College of Engineering, Bhubaneswar, Odisha, 752054, India

2 Department of Mathematics, Ravenshaw University, Cuttack, Odisha, 753003, India


In this paper, an economic order quantity (EOQ) inventory model for a deteriorating item is developed with the following characteristics:

The demand rate is deterministic and two-staged, i.e., it is constant in first part of the cycle and linear function of time in the second part.

Deterioration rate is time-proportional.

Shortages are not allowed to occur.

The optimal cycle time and the optimal order quantity have been derived by minimizing the total average cost. A simple solution procedure is provided to illustrate the proposed model. The article concludes with a numerical example and sensitivity analysis of various parameters as illustrations of the theoretical results.