The optimal cycle time for deteriorating items under permitted delay of payment

Goyal (1985) presented an EOQ model under conditions of permissible delay in payments. It is assumed in his paper that the unit selling price and the unit purchasing price are equal. Teng (2002), and Chung and Huang (2004) amended Goyal's model to allow the unit selling price and the unit purchasing price not necessarily be equal to reflect the real-life situations. The aim in this paper is to modify Chung's model by considering a deteriorating-item inventory situation. Three theorems are developed to determine the optimal cycle time and numerical examples are given to illustrate these theorems.