An inventory model with variable demand, component cost and selling price for deteriorating items

In this paper, we develop an economic order quantity (EOQ) model for finite production rate and deteriorating items with time dependent increasing demand. The component cost and the selling price are considered at a continuous rate of time. The objective of this model is to maximize the total profit over the finite planning horizon. We also want to find the integral number of orders in the finite planning horizon. A numerical example, graphical representations and sensitivity analysis are given to illustrate the model.

► We find profit of the inventory model for the number of order. ► The number of orders is always integer. ► We consider the increasing component cost with respect to time. ► Deterioration for the product is incorporated. ► Selling price varies increasingly with the time