Optimal ordering policy with non- increasing demand for time dependent deterioration under fixed life time production and permissible delay in payments

Abstract

Most of the items in the universe deteriorate over time. Many items such as pharmaceuticals, high tech products and readymade food products also have their expiration dates. This paper developes an economic order quantity model for retailer in which demand rate is linearly time dependent and non increasing function of time, deterioration rate is time dependent having expiration dates under trade credits..We then show that the total average cost is sensitive with respect to the key parameters. Furthermore, we discuss several sub- special cases. Finally, numerical examples and sensitivity analysis is provided to illustrate the results. Mathematica 5.2 software is used to find numerical results