Inventory replenishment policy for deteriorating items with a linear trend in demand considering shortages

Considers the inventory system using the assumptions that the demand rate is deterministic and follows a linear trend, that the rate of deterioration is constant and that shortages are allowed. Many researchers solve this inventory system from the heuristic point of view. Essentially, their solutions are just suboptimal. Proposes an optimal model for determining the optimal inventory replenishment policy for this inventory system. Some numerical examples show that the heuristic method will sometimes result in significant cost penalties.