| Article ID: | iaor20032647 |
| Country: | United States |
| Volume: | 33 |
| Issue: | 2 |
| Start Page Number: | 141 |
| End Page Number: | 151 |
| Publication Date: | Feb 2002 |
| Journal: | International Journal of Systems Science |
| Authors: | Dye Chung-Yuan, Chang H.J., Hung C.H. |
| Keywords: | deteriorating items, economic order |
A varying deterioration rate, time-value of money and the condition of permissible delay in payments used in conjunction with the EOQ model are the focus of discussion. The replenishment number and fraction of each cycle in which there is no shortage are both determined to minimize the present value of inventory cost over a finite planning horizon. Two special cases and numerical examples are presented to illustrate the model.