EOQ MODEL FOR AN INVENTORY WITH A LINEAR TREND IN DEMAND AND FINITE RATE OF REPLENISHMENT CONSIDERING SHORTAGES

An economic order quantity (EOQ) model is developed for an item with a deterministic time-dependent demand pattern with a linear (positive) trend. It is assumed that the inventory is replenished at a uniform rate. The model is solved allowing either no shortage or a shortage in the inventory. The procedures of applying the results in practical cases are illustrated with the help of numerical examples.