An Ordering Policy for Deteriorating Items with Hybrid Demand Under Permissible Delay in Payment and Price Inflation

ABSTRACT:

The paper studies an in ventory model for deteriorating items under price inflation and permissible delay in payment. The demand rate is assumed to be hybrid, which is observed for commodities like coffee, cotton, tin, copper, wristwatch, automobile, etc. The model is studied over a finite planning horizon with unequal cycle lengths. A solution procedure is indicated to determine the optimal number of replenishments, cycle times and optimal order quantities.