Article ID: | iaor200290 |
Country: | United Kingdom |
Volume: | 28 |
Issue: | 9 |
Start Page Number: | 915 |
End Page Number: | 934 |
Publication Date: | Aug 2001 |
Journal: | Computers and Operations Research |
Authors: | Chung Kun-Jen, Tsai Sui-Fu |
Keywords: | deteriorating items |
This paper derives an inventory model for deteriorating items with the demand of linear trend and shortages during the finite planning horizon considering the time value of money. A simple solution algorithm using a line search is presented to determine the optimal interval which has positive inventories. Numerical examples are given to explain the solution algorithm. Sensitivity analysis is performed to study the effect of changes in the system parameters.