An inventory model for deteriorating items with exponential declining demand and partial backlogging

Abstract

This study proposes an EOQ inventory mathematical model for deteriorating items with exponentially decreasing demand. In the model, the shortages are allowed and partially backordered. The backlogging rate is variable and dependent on the waiting time for the next replenishment. Further, we show that the minimized objective cost function is jointly convex and derive the optimal solution. A numerical example is presented to illustrate the model and the sensitivity analysis is also studied.

Keywords

• inventory
• deteriorating items
• exponential declining demand
• partial backlogging