An EOQ Model for a Deteriorating Item With Non-Linear Demand Under Inflation and a Trade Credit Policy


S. K. Manna, K. S. Chaudhuri




This paper develops an infinite time-horizon deterministic economic order quantity (EOQ) inventory model with deterioration based on discounted cash flows (DCF) approach where demand rate is assumed to be non-linear over time. The effects of inflation and time-value of money are also taken into account under a trade-credit policy of type "$\alpha /T_1 net T$". The results are illustrated with a numerical example. Sensitivity analysis of the optimal solution with respect to the parameters of the system is carried out.