In this paper, an EOQ model is developed for an itemwith time varying
quadratic demand and shortages and permissible delay in payments.
However, this type of demand rate is more realistic because it
can represent both accelerated growth and retarded growth in demand
as it has the general form D(t) = a + bt + ct2. Here c = 0 indicates
linear time dependent demand and a = 0 as well as b = 0 simultaneously
indicate constant demand. The model has been developed
under three circumstances, Case 1: the credit period is less than the
time of shortage period, Case 2: the credit period is greater than
the time of commencement of shortage period but less than cycle
length and Case 3: credit period is greater than the cycle for