An ordering policy for deteriorating items with two component demand and price breaks allowing shortages

This paper deals with an EOQ model of an inventory problem with a two-component demand rate: (i) For a certain period the demand rate is quadratic depending on stock. (ii) For the rest of the cycle the demand rate is constant. Price breaks are also taken into account. Effects of deterioration are considered. This paper considers an EOQ model with a two-component demand rate, deterioration of items and price breaks. Shortages are allowed. The effectiveness of this model is illustrated with a numerical example and sensitivity analysis has been performed.