AN EPQ MODEL FOR DELAYED DETERIORATING ITEMS WITH QUADRATIC DEMAND AND SHORTAGES

In this paper, we develop an EPQ model for delayed deteriorating items where the demand before deterioration sets in is assumed to be time dependent quadratic demand while that after deterioration sets in is assumed to be constant. It is also assumed that shortages are allowed and partially backordered. The best cycle length X which optimizes the total inventory cost and the economic production quantity EPQ are obtained. The model developed is an extension of [1] in which shortages are not allowed. A numerical example is giving to show the applicability of the model and sensitivity analysis is also carried out to show the effect of changes in system parameters.