Effects of inflation and time-value of money on an inventory model with time-dependent demand rate and shortages

In a recent paper, Datta and Pal investigated the effects of inflation and time-value of money on an inventory model with linearly increasing demand and finite shortage cost. However, their models are formulated under the assumption of equal inventory carrying time during each replenishment cycle. In this paper, we redevelop the models of Datta and Pal by relaxing this assumption and modifying their mathematical formulations. Our models can be applicable to both growing and declining markets with general continuous time-dependent demand rates. Numerical examples are provided to illustrate the developed models.