Article ID: | iaor1996416 |
Country: | United Kingdom |
Volume: | 46 |
Issue: | 6 |
Start Page Number: | 771 |
End Page Number: | 782 |
Publication Date: | Jun 1995 |
Journal: | Journal of the Operational Research Society |
Authors: | Chaudhuri K.S., Goswami A., Bose S. |
An economic order quantity (EOQ) inventory model for deteriorating goods is developed with a linear, positive trend in demand allowing inventory shortages and backlogging. The effects of inflation and the time-value of money are incorporated into the model, considering two separate inflation rates: namely, the internal (company) inflation rate and the external (general economy) inflation rate. It is assumed that the goods in the inventory deteriorate over time at a constant rate