The EPQ with partial backordering and phase‐dependent backordering rate

In previous work we established a closed‐form optimal stocking strategy for an EPQ model with partial backordering at a constant rate &Bgr;. Here we extend this work to allow for the possibility that the percentage of demand backordered will increase when production starts again. We show how our previous model can be adapted to find the optimal decision variable values for this new assumption and develop the condition that the initial value of &Bgr; must meet for partial backordering to be optimal.