Inventory System for deteriorating item with time dependent holding cost
in declining market with partial backlogging
Chetan A. Jhaveri
Chetan@imnu.ac.in
Institute of Management, Nirma University, Ahmedabad, India
This research study develops a mathematical inventory model to derive optimal ordering policy for constantly
deteriorating item when demand of an item is quadratically decreasing with time and inventory holding cost is
linearly increasing function of time. The shortages are allowed and part of shortages is partially backordered.
The backlogging rate is considered as function of time. The objective is to minimize the total inventory cost. A
numerical illustration is shown to exhibit the proposed inventory model. The Sensitivity is carried out to
analyze the changes in the optimal solution with respect to the key parameters.
Key Words: Time dependent holding cost, quadratically declining demand, partial backlogging, deteriorating
items