A periodic review inventory problem with variable stock dependent demand

This paper deals with a periodic review inventory problem over a finite horizon where the demand in different periods is assumed to be influenced by the stock on display. This is called Stock Dependent Demand (SDD). A linear function is used to explain the SDD and the effect of SDD is assumed to be temporary at the beginning of the period. Models with and without shortages have been developed to determine the optimal number of orders to be placed and the optimal lot sizes for different periods. The models are numerically illustrated.