EOQ MODELS FOR NONINSTANTANEOUS/INSTANTANEOUS DETERIORATING ITEMS WITH CUBIC DEMAND RATE UNDER INFLATION AND PERMISSIBLE DELAY IN PAYMENTS

Abstract

In this article, an attempt is made to develop two inventory models for non-instantaneous deteriorating items and two inventory models for instantaneous deteriorating items with linear deterioration rate and cubic demand rate.  That is, the demand rate is a piecewise cubic function of time under inflation and permissible delay in payments.  This model supports in minimizing the total inventory cost by finding an optimal replenishment policy; where shortages are allowed, partially backlogged and completely backlogged cases are considered.  The backlogging rate is variable and dependent on the waiting time for the next replenishment.  Numerical examples are given to establish the analytical results.  Sensitivity analysis of the optimal solution with respect to major parameters is carried out and the effects are discussed in detail.