Abstract In a recent paper, Khanra, Ghosh and Chaudhuri's (2011) presented an EOQ model for a deteriorating item with time dependent quadratic demand under permissible delay in payment. Deterioration considered in most of the EOQ models is constant, while in most of the practical cases the deterioration rate increases with time. This work is motivated by Khanra, Ghosh and Chaudhuri's (2011) paper extending their model to allow for a variable rate of deterioration when delay in payment is permissible. The time varying demand rate is taken to be a quadratic function of time. For settling the account, the model is developed under two circumstances: case-1: The credit period is less than or equal to the cycle time and case-2: the credit period is greater than the cycle time. A numerical example is provided to illustrate the model. Sensitivity analysis has also been conducted to study the effect of the parameters
