Economic Order Quantity Model for Delayed Deteriorating Items with Time Dependent Linear Declining Demand And its Sensitivity Analysis
Ibrahim Alhaji Garba and Jamilu Adamu
Keywords: EOQ, Inventory, Delayed deterioration, linear declining demand
The present study investigate an Economic Order Quantity (EOQ) Inventory model for delayed (non-instantaneous) deteriorating items is built on the assumption that the demand rate before deterioration begins is a linear declining function of time, while the demand rate after deterioration sets in becomes constant until the inventory is completely depleted. The optimal cycle length yields the lowest total inventory cost. By minimizing the total inventory cost, the model is solved analytically which results in the best cycle length being determined. Moreover, to demonstrate how changes in some model value parameters affect the model, we perform a sensitivity analysis.