Abstract

AN EOQ MODEL FOR NON-INSTANTANEOUS DETERIORATING ITEMS WITH TWO PHASE DEMAND RATES, LINEAR HOLDING COST AND PARTIAL BACKLOGGING RATE UNDER TRADE CREDIT POLICY

B. Babangida and Y. M. Baraya

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In this article, an EOQ model for non-instantaneous deteriorating items with two phase demand rates, time dependent linear holding cost and shortages under trade credit policy was developed. The demand rate before deterioration begins is assumed to be time dependent quadratic and that after deterioration begins is considered as a constant. Shortages are allowed and partially backlogged. The purpose of this work is to determine the optimal time with positive inventory, cycle length and economic order quantity simultaneously such that total variable cost has minimum value. The necessary and sufficient conditions for the existence and uniqueness of the optimal solutions have been established. Some numerical examples have been given to illustrate the theoretical results of the model. Sensitivity analysis has been carried out to see the effect of changes in some model parameters on decision variables and suggestions toward minimising the total variable cost were also given. Keywords: Non-instantaneous Deterioration, Two Phase Demand Rates, Trade Credit Policy, Time Dependent Linear Holding Cost, Partially Backlogged Shortages.

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