• EOQ MODEL WITH SHORTAGES IN BEGINNING AND PERIODIC DEMAND FOR DETERIORATING ITEMS

Abstract

Many products exists in nature which follows repetitions of demand pattern. For example, demand of water cooler is high in summer and low in winter and again increases as temperature increases and hence the demand pattern is periodic. So, we need to develop a new inventory model for such kind of products. In this paper an economic order quantity model has been presented for deteriorating item with periodic demand. Also one can start business with shortage like advance booking of products which could be fulfilled after time duration. We have incorporated the shortage at the beginning of the sale season. A new model is developed and optimal shortage duration is obtained along-with some other results. Simulation study is performed along with managerial insights. Proposed model is found useful for products having periodic demand pattern and bearing shortage at the starting.