An EPQ Model For Non-Instantaneous Deteriorating Items With Finite Production Rate And Time Dependent Demand Under The Effect Of Partial Backlogging With Credit Financing Policy

Abstract

This paper investigates the optimal replenishment policy for non-instantaneous deteriorating items under the policies of credit financing policy within the EPQ framework. Production rate is finite and shortages are allowed subject to partially backlogging.  The backlogging rate varies inversely as the waiting time for the next replenishment. Moreover, the demand is considered to be time dependent demand which suits the real scenario of the business industry. The objective of this work is to minimize the total inventory cost and to find the optimal length of replenishment and the optimal order quantity. Computational algorithms for this model are designed to find the optimal order quantity and the optimal cycle time. The numerical examples are given and the sensitivity analysis of the parameters introduced are carried out to demonstrate the application and the performance of the proposed model.