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