An EOQ model for deteriorating items with time-varying demand and shortages

The study explores the inventory replenishment policies for the cases with time-varying demand, linearly increasing deterioration rate, partial back-ordering, constant service level and equal replenishment intervals over a fixed planning horizon. Since it is difficult to solve the problem directly, we derive the upper bound of replenishment number for a specific planning horizon and find the solution of service level under a given number of replenishment. The optimal solutions of replenishment number and service level are then determined. Numerical examples and sensitivity analyses are also provided to illustrate the solution procedure.