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An EOQ Model for Ameliorating and Deteriorating Items with Time-Varying Demand under Inflation and Time Discounting °í º´¼º In a recent paper, Bose, Goswami and Chaudhuri considered the inventory re-plenishment problem for a deteriorating item with linearly time-varying demand, finite shortage cost and equal replenishment intervals under inflation and time
discounting. The reorder number, the interval between two successive reorders
and shortage intervals are all determined in an optimal manner so as to minimize
the total system cost. The analysis, however, contained mathematical errors for
modeling the inventory holding costs an d the purchase costs.
In this paper, we propose the correct model for this problem and allow an
ameliorating item as well as a deteriorating item at the same time. Moreover,
more realistic assumption on the period for which there is no-shortage in each
replenishment interval is introduced and the case allowing shortages in all cycles
is also introduced in this paper. Numerical examples are included to compare
with the previous model. |