An EOQ model for items with Stock Dependent Consumption Rate and Exponential Decay

In this paper an inventory model is developed for Initial Stock Dependent Consumption Rate and Exponential Decay Items, considering cost of the material lost due to deterioration in addition to ordering cost, carrying cost and material cost. Infinite replenishment rate is assumed and backlogging is not permitted. Expression for optimum ordering quantity has been obtained. The model is illustrated with a numerical example and the effects of various parameters on economic ordering quantity and total system cost have been analysed through sensitivity analysis.