An inventory model for deteriorating items with stock-dependent demand and time-value of money when credit period is provided

In this paper, a deterministic inventory model is developed for deteriorating items with stock-dependent demand and shortages. The conditions of permissible delay in payments and time-value of money are also taken into consideration. The replenishment number and the fraction of each cycle in which there is no shortage are both determined so as 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.