J Ind Eng Int (2017) 13:455–463

DOI 10.1007/s40092-017-0198-6

ORIGINAL RESEARCH

An optimal policy for deteriorating items with time-proportional

deterioration rate and constant and time-dependent linear
demand rate
Trailokyanath Singh1 • Pandit Jagatananda Mishra2 • Hadibandhu Pattanayak2

Received: 7 October 2016 / Accepted: 17 March 2017 / Published online: 6 April 2017
Ó The Author(s) 2017. This article is an open access publication

Abstract In this paper, an economic order quantity (EOQ) Introduction

inventory model for a deteriorating item is developed with
the following characteristics: Most of the business organizations emphasize on inventory
management and solving inventory problems because they
(i) The demand rate is deterministic and two-staged,
want to obtain economic order quantity (EOQ) which
i.e., it is constant in first part of the cycle and
minimizes the total average inventory cost. Over the last
linear function of time in the second part.
few decades, many researches have been done for con-
(ii) Deterioration rate is time-proportional.
trolling and maintaining the inventory. In real life situation,
(iii) Shortages are not allowed to occur.
decay or deterioration of items is a natural phenomenon.
The optimal cycle time and the optimal order quantity Vegetables, fruits, foods, perfumes, chemicals, pharma-
have been derived by minimizing the total average cost. A ceutical, radioactive substances and electronic equipments,
simple solution procedure is provided to illustrate the etc., are examples of deteriorating items, i.e., the loss
proposed model. The article concludes with a numerical characteristics of items at any time is regarded as deteri-
example and sensitivity analysis of various parameters as oration. Therefore, it is not wise to ignore the factor
illustrations of the theoretical results. deterioration while analyzing the model. Several inventory
models for deteriorating items are developed to answer
Keywords Constant and time-dependent linear demand these questions: ‘‘How much to order to replenish the
rate  Deteriorating items  EOQ  Time-proportional inventory of an item’’ and ‘‘When to order so as to mini-
deterioration rate. mize the total cost’’ (Gupta and Hira 2002).
The classical inventory model for deteriorating items of
Mathematics Subject Classification 90B05 Harris (1915) and Wilson (1934) states that the depletion of
inventory is mainly due to the constant demand rate.
Firstly, the effect of deterioration on fashion items after
their prescribed date was studied by Whitin (1957). Later, a
dynamic version of the classical EOQ model for deterio-
& Trailokyanath Singh rating items was developed by Wagner and Whitin (1958).
trailokyanaths108@gmail.com
Ghare and Schrader (1963) studied the inventory model for
Pandit Jagatananda Mishra deteriorating items with constant deterioration rate and
pjmishramath@gmail.com
constant demand rate with the help of the differential
Hadibandhu Pattanayak
h.pattnayak@gmail.com
equation dIdtðtÞ ¼ hI ðtÞ  DðtÞ; 0  t  T where I ðtÞ, DðtÞ
and h represent the inventory level at any time t, the
1
Department of Mathematics, C. V. Raman College of demand rate at time t and constant deterioration rate,
Engineering, Bhubaneswar, Odisha 752054, India respectively, during the cycle time T. Furthermore, the
2
Department of Mathematics, Ravenshaw University, Cuttack, model for replenishment policies involving time-varying
Odisha 753003, India

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pattern has received much attention from several inventory model for a deteriorating item with time-de-
researchers. Donaldson (1977) examined the classical no- pendent quadratic demand rate and constant deterioration
shortage inventory model for deteriorating items with a rate. The inventory models for deteriorating items with
linear trend in demand over a known and finite horizon by constant deterioration rate and exponential demand rate are
using calculus method. An order-level inventory model for established by Hollter and Mak (1983) and Ouyang et al.
deteriorating items having constant deterioration rate was 2005).
studied by Shah and Jaiswal (1977). Aggarwal (1978) Some more researches have been carried out on quantity
modified the work of Shah and Jaiswal by calculating the discount, partial back-ordering, fuzzy environment of
average holding cost. Dave and Patel (1981) developed the inventory system and delay in payments, etc. Widyadana
inventory model for deteriorating items with linear et al. (2011) solved two EOQ models for deteriorating
increasing in demand rate and deterioration rate which was items inventory problems without using derivatives and
a constant fraction of the on-hand inventory. All the found these as almost similar to the original model.
models discussed above are based on the constant deteri- Taleizadeh et al. (2013) solved a fuzzy rough EOQ model
oration rate, constant demand rate, infinite replenishment for deteriorating items considering quantity discount and
and no shortage. Heng et al. (1991) proposed an expo- prepayment by using meta-heuristic algorithms. Taleizadeh
nential decay in inventory model for deteriorating items by (2014) established an EOQ model for an evaporating item
assuming a finite replenishment rate and constant demand with partial back-ordering and partial consecutive prepay-
rate. The reviews of the advances of deteriorating inventory ments. In this model, the retailers are allowed to pay all or
literature are presented by Raafat (1991); Goyal and Giri a fraction of cost in advance. Thangam (2014) developed a
(2001); Li et al. (2010); Bakker et al. (2012) and Janssen two-level trade credit financing with selling price discount
et al. 2016). and partial order cancelations under permissible delay in
Goswami and Chaudhuri (1991) considered the replen- payment. Taleizadeh et al. (2015) developed a production
ishment policy for a deteriorating item with linear trend in and inventory problem under two scenarios in a three-layer
demand rate. Xu et al. (1991) presented an inventory supply chain which involves one distributor, one manu-
model for deteriorating items with linear demand rate over facturer and one retailer. In this model, both defective
known and finite horizon. Chung and Ting (1994) proposed items and raw materials with imperfect quality are sold at
a heuristic inventory model for deteriorating items with lower prices. Heydari and Norouzinasab (2015) studied a
time-proportional demand rate. Wee (1995) proposed a two-level discount inventory model for coordinating a
replenishment policy with exponential time-varying decentralized supply chain considering demand as
demand rate by extending the partial backlogging model. stochastic and price-sensitive.
Benkherouf (1995) presented an optimal replenishment Another class of researches on inventory model for
policy for a deteriorating item with known and finite deteriorating items was developed by considering the
planning horizon. The above models are based on constant deterioration rate as time-proportional. Covert and Philip
deterioration rate and shortages. Srivastava and Gupta (1973) derived an EOQ model for deteriorating items
(2007) studied an EOQ model for deteriorating items with without shortages under the condition of constant demand
constant deterioration rate, both the constant and time-de- rate and two-parameter Weibull distribution deterioration
pendent demand rate and no-shortages. rate. Philip (1974) generalized the model of Covert and
In the real market situation, the state of demand rate of Philip with same conditions by replacing two-parameter
any product is always dynamic. Many researchers devel- Weibull distribution by three-parameter Weibull distribu-
oped models by assuming time-dependent demand as lin- tion deterioration rate. Misra (1975) suggested an optimum
ear, quadratic or exponential. However, linear demand, production lot size inventory model for deteriorating items
quadratic demand and exponential demand rates require by including both constant and varying deterioration rate.
uniform change, steady increase or decrease and rapid Ghosh and Chaudhuri (2006) developed an EOQ model for
changes in demand rate, respectively. Chakrabarti and a deteriorating item over a finite time-horizon by consid-
Chaudhuri (1997) studied a replenishment inventory ering quadratic demand rate, time-proportional deteriora-
problem for a deteriorating item over finite horizon with tion rate and by allowing shortages in all cycles. Mishra
linear trend in demand rate. Singh and Pattnayak (2014) et al. (2013) developed an inventory model for deteriorat-
presented a two-warehouse inventory model with condi- ing items with time-proportional deterioration rate, time-
tionally permissible delay in payment by considering linear dependent linear demand rate and time-varying holding
demand rate. Ghosh and Chaudhuri (2004) developed an cost under partial backlogging. Sarkar and Sarkar (2013)
inventory model with two-parameter Weibull distribution considered an inventory model with variable deterioration
deterioration rate, time-quadratic demand rate and short- rate and inventory dependent demand rate. Sanni and
ages. Khanra et al. (2011) discussed an order-level Chukwu (2013) developed an EOQ model for deteriorating

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items with ramp-type demand rate, three-parameter Wei- Assumptions

bull distribution deterioration after allowing shortages.
In classical inventory models, the deterioration rate and To develop the proposed mathematical model of the
demand rate are assumed to be constant. But in reality, inventory system, the following assumptions are consid-
the demand is constant for some period of time and then ered in this paper:
it increases or decreases according to the popularity of the
(i) The inventory system involves only one type of
product. Furthermore, time is most important factor which
item.
plays an important role in developing the inventory
(ii) There is no deterioration for the first part of the
model. As failure rate of some items increases with the
cycle and the deterioration rate is time-propor-
passage of time, then the deterioration rate increases with
tional for the second part of the cycle.
respect to time. Therefore, the time-proportional deterio-
(iii) The demand is deterministic and has a two-
ration rate is more realistic for the development of the
component form for the time horizon, i.e., it is
model.
constant for the part of the cycle and is a linear
In this paper, an EOQ inventory model for deteriorat-
function of time in the second part of the cycle.
ing items is developed with time-proportional deteriora-
(iv) Shortages are not allowed to occur.
tion rate as well as both the constant and time-dependent
(v) The occurrence of replenishment is instantaneous
linear demand rate. The demand for such products is
and the delivery lead time is zero.
constant for some time and after that, when the product
(vi) The planning horizon is infinite. Only a typical
becomes popular in the market, the demand for the pro-
planning schedule of length is considered and all
duct increases. A situation like this commonly occurs in
the remaining cycles are identical.
practice. Shortages are not allowed to occur. The reason
(vii) Deteriorated units are not replaced or repaired
for considering the time-proportional deterioration rate
during the cycle period under consideration.
and constant and time-dependent demand rate is due to
(viii) The ordering cost, holding cost and unit cost
the change in deterioration rate with respect to time and
remain constant over time.
the suitable demand for the present market situation,
respectively. It is assumed that items do not deteriorate at
the beginning of the period, but the deterioration rate is
time-proportional after some time with an increase in Notations
demand. The reason for considering constant and time-
dependent demand rate instead of the time-dependent For convenience, the following notations are used
demand is due to the newly launched products like new throughout the paper.
branded android mobiles, automobiles, garments, etc. The
hðtÞ: The time-proportional deterioration rate, i.e.,
demand for such products becomes constant initially and
hðtÞ ¼ h0 t; where 0\h0 \\1 and t [ 0. For t ¼ 1,
then increases. Shortages are not allowed to occur. In
the time-proportional deterioration rate reduces to a
addition, the time-proportional deterioration rate is con-
constant deterioration rate.
sidered for the change in deterioration rate with respect to
D(t): The varying demand rate, i.e.,
the time. The main objective of the model is to minimize

the average total cost by optimizing the cycle time point. a; 0  t  l;
DðtÞ ¼
In addition, optimal order quantity is calculated. The a þ bðt  lÞ; l  t  T:
solution procedure backed by a numerical example is
provided to illustrate the proposed model. Finally, sensi-
tivity of the solution with respect to various parameters
associated with the model is studied. During the first interval ½0; l, the demand is constant at
The rest of the paper is organized as follows: the the rate of a units per unit time, i.e., it does not vary with
assumptions and notations for the development of the time and during the second interval ½l; T, the demand rate
model are provided in Sects. 2 and 3, respectively. The is a linear function of time.
formulation of the model is described in Sect. 4. In Sects. 5 I(t): The inventory level at any time t.
and 6, solution procedure and a numerical example are T: The length of the replenishment cycle.
presented to illustrate the developed model. In Sect. 7, q: The number of items received at beginning of
sensitivity analysis with respect to various parameters is the inventory system.
carried out. Finally, the summary and the future direction co : The ordering cost per order.
of research are given in Sect. 8.

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hc : The inventory holding cost per unit per unit of al: ð4:2Þ
time.
dc : The unit cost of the item per unit per unit of time. Therefore, the inventory level is reduced by the factor al
l: The time point at which the demand increases and thus, the rest of inventory during ½l; T is given by
with time as well as the deterioration starts. q  al: ð4:3Þ
ATCðTÞ: The average total cost per unit per unit time.
T : The optimal value of T. For the sake of mathematical simplicity, the interval ½l; T
q : The optimal value of q. can be written as
ATCðT  Þ: The optimal average total cost per unit per
t1 ¼ T  l: ð4:4Þ
unit time.
During the period ½l; T, the instantaneous inventory level
I ðtÞ at any time t is governed by the following differential
equation:
Mathematical formulation of the model
dI ðtÞ
þ hðtÞI ðtÞ ¼ ½a þ bðt  lÞ; 0  t  t1 ; ð4:5Þ
The cycle starts with the initial lot-size q at time t ¼ 0. dt
During the time ½0; l, the inventory level decreases due to
where hðtÞ ¼ h0 t; ð0\h0 \\1Þ.
the constant demand rate, say, a units per unit time. At time
The solution of the differential Eq. (4.1) with boundary
t ¼ l, the depletion occurs due to the combined effect of
condition I ð0Þ ¼ q  al is given by
demand and deterioration and finally comes to an end at    2  
h0 t3 t h0 t4 h0 t 3 h0 t 2
time t ¼ T. The behavior of the inventory system is I ðtÞ ¼ qala t þ b þ l t þ e 2 ; 0tt1 ;
6 2 8 6
depicted in the Fig. 1.
The objective of the model is to determine the optimal ð4:6Þ
cycle length T that minimizes the average total cost by neglecting the higher power of h0 as 0\h0 \\1.
ATCðT Þ over the time horizon [0, T]. The Eq. (4.6) at I ðt1 Þ ¼ 0 is given by
During the interval ½0; l, the demand rate is constant   2  
h0 t13 t1 h0 t14 h0 t13
per unit time and is given by q ¼ al þ a t1 þ þb þ  l t1 þ :
6 2 8 6
a ð4:1Þ
ð4:7Þ
and thus, the total demand in the interval ½0; l is given by According to the assumptions of the model, the average
total cost is composed of the following costs:
I. The ordering cost (IOC):
IOC ¼ co ð4:8Þ

II. The inventory holding cost (IHC) during the period

[0, T] is calculated as follows:
1. The of inventory holding cost during the period
½0; l is hc  area of trapezium ABCO, i.e.,
 
1
hc  ðq þ ðq  alÞÞ  l
2 ð4:9Þ
h ali
¼ lhc ðq  alÞ þ
2
and
2. The inventory holding cost during the period
½0; t1  is hc  area of triangle BDC, i.e.,
 
1
¼ hc  t1  ðq  alÞ : ð4:10Þ
2

Thus, the inventory holding cost (IHC) during the

Fig. 1 The graphical representation of the inventory level with time period [0, T] is the sum of inventory holding cost

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J Ind Eng Int (2017) 13:455–463 459

during the period ½0; l and inventory holding cost provided the sufficient condition
during the period ½0; t1 , i.e.,
o2 ATCðT Þ
  [ 0:
al2  t1  oT 2
IHC ¼ hc þ ðq  alÞ l þ : ð4:11Þ
2 2 (See Appendix).
The solution procedure for above described model is
III. The deterioration cost (IDC) during the period [0, T] is
 Z t1  given below.
IDC ¼ dc q  al  ½a þ bðt  lÞdt
0
  ð4:12Þ
bt12 Solution procedure: algorithms
¼ dc q  al  ða  blÞt1  :
2
To obtain the optimal value of ATC ðT Þ and q, the fol-
Hence, the average total cost per unit time ðATCðT ÞÞ of the lowing steps are adopted.
system during the period [0, T] expressed as the sum of the
Step I. Put the appropriate value of the parameters.
ordering cost, the inventory holding cost and the deterio-
Step II. Determine the value of T from the Eq. (4.16) by
ration cost, i.e.,
Newton–Raphson method.
1 Step III. Compare T with l.
ATCðT Þ ¼ ½IOC þ IHC þ IDC
T " #  (i) If T [ l, then T is a feasible solution, say T  . Go
co aðT  lÞ h0 ðT  lÞ2 hc ðT þ lÞ
¼ þ 1þ þ dc to Step IV.
T T 6 2
" # (ii) If T\l, then T is infeasible.
3
bðT  lÞ ðT  lÞ h0 ðT  lÞ lh0 ðT  lÞ2
þ þ l Step IV. Substitute T  in Eqs. (4.13) and (4.7) to get
T 2 8 6

h c ðT þ l Þ
 ATC ðT  Þ and q , respectively.
 þ dc
2
" #
1 hc al2 bdc ðT  lÞ2
þ  dc ða  blÞðT  lÞ  ;
T 2 2 Numerical example
ð4:13Þ
To illustrate the results obtained from the inventory model
by using Eqs. (4.4) and (4.7) for deteriorating items with two-component demand rate
The objective of the problem is to determine the optimal and time-proportional deterioration rate, the following
value of T , i.e., T  such that ATCðT Þ is minimum. numerical example is considered.
For the optimum value of ATCðT Þ, we have
Example 1 Let us take the parametric values of the
oATCðT Þ
¼0 ð4:14Þ inventory model of deteriorating items in their units as
oT follows:
and hc ¼ $0:50=unit=day, co ¼ $80:0, dc ¼ $18:0=unit,
a ¼ 20 units, b ¼ 0:2, l ¼ 0:4 days and h0 ¼ 0:02.
o2 ATCðT Þ
[ 0: ð4:15Þ Solving Eq. (4.16), the optimal cycle time is T  ¼
oT 2 2:73841 days which satisfies the sufficient condition, i.e.,
From Eq. (4.14), we have o2 ATCðT  Þ
" # oT 2
¼ 10:5991 [ 0. Substituting the value of T  ¼
2 
oATCðT Þ a h0 ðT  lÞ hc ð T þ l Þ 2:73841 in Eqs. (4.13) and (4.7), the optimal value of the
¼ 1þ þ dc
oT T 2 2 average total cost and the optimal order quantity are
" # 
b h0 ðT  lÞ3 lh0 ðT  lÞ2 hc ðT þ lÞ ATCðT  Þ ¼ $48:9359 and q ¼ 55:9919 units,
þ T  2l þ  þ dc
T 2 2 2 respectively.
!
2
ahc ðT  lÞ h0 ðT  lÞ
þ 1þ
2T 6
! Sensitivity analysis
bhc ðT  lÞ ðT  lÞ h0 ðT  lÞ3 lh0 ðT  lÞ2
þ þ l
2T 2 8 6 We now study the effect of changes in the values of various
1 parameters ch , co , dc , a, b, l and h0 on the optimum cost
 ½dc ða  blÞ þ bdc ðT  lÞ þ ATCðT Þ ¼ 0
T and optimum order quantity. The sensitivity analysis is
ð4:16Þ performed by changing the each of the parameters by þ50,

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Table 1 Sensitivity analysis

Parameter % Change T ATCðT  Þ % Change in parameter q % Change in
in parameter ATCðT  Þ parameter q

hc ?50 2.50948 55.6374 ?13.8036 51.0990 -08.73859

?25 2.64076 51.6908 ?05.62961 53.8977 -03.74018
?10 2.68848 50.3265 ?02.84168 54.9198 -01.91474
-10 2.79070 47.5175 -02.89849 57.1179 ?02.01101
-25 2.84550 46.0702 -05.85603 58.3014 ?04.12470
-50 3.02688 51.5378 -15.11790 62.2449 ?11.16770
c0 ?50 3.17443 62.4447 ?27.60510 65.4841 ?16.95280
?25 2.92744 54.5820 ?11.53770 60.0778 ?07.29731
?10 2.83584 51.8060 ?05.86502 58.0925 ?03.75161
-10 2.63416 45.9581 -06.085100 53.7565 -03.99236
-25 2.52177 42.8553 -12.425600 51.3602 -08.27209
-50 2.11418 32.5224 -33.540800 42.7791 -23.59770
dc ?50 2.53320 51.4989 ?5.23746 51.6033 -07.83792
?25 2.64703 50.0231 ?2.22168 54.0318 -03.50068
?10 2.69087 49.4912 ?1.13475 54.9710 -01.82330
-10 2.79024 48.3544 -1.18829 57.1080 ?01.99332
-25 2.84712 47.7438 -2.43604 58.3364 ?04.18721
-50 3.05928 45.6933 -6.62622 62.9537 ?12.43360
a ?50 2.36117 57.6703 ?17.84870 71.8225 ?28.27300
?25 2.56327 52.6566 ?07.60321 62.6315 ?11.85810
?10 2.64573 50.8408 ?03.89264 59.3710 ?06.03498
-10 2.84374 46.9277 -04.10374 52.4786 -06.27466
-25 2.96504 44.7982 -08.45535 48.8106 -12.82560
-50 3.48469 37.3961 -23.58150 36.5675 -34.69140
b ?50 2.72798 49.2064 ?0.184936 55.9512 -0.072689
?25 2.73421 48.9722 ?0.074179 55.9756 -0.029111
?10 2.73630 48.9541 ?0.037191 55.9836 -0.014824
-10 2.74053 48.9176 -0.037396 56.0003 ?0.015002
-25 2.74265 48.8993 -0.074792 56.0085 ?0.029647
-50 2.74910 48.8442 -0.187388 56.0340 ?0.075189
l ?50 2.81508 47.4662 -3.003320 57.2587 ?2.262470
?25 2.76874 48.3248 -1.248780 56.4881 ?0.886200
?10 2.75351 48.6263 -0.632660 56.2380 ?0.439528
-10 2.72343 49.2535 ?0.649012 55.7496 -0.432741
-25 2.70857 49.5795 ?1.315190 55.5109 -0.859053
-50 2.66478 50.6088 ?3.418550 54.8192 -2.094410
h0 ?50 2.52401 51.5931 ?5.42996 51.7311 -07.60967
?25 2.64227 50.0671 ?2.31160 54.0822 -03.41067
?10 2.68825 49.5145 ?1.18236 54.9958 -01.77901
-10 2.79349 48.3280 -1.24224 57.0854 ?01.95296
-25 2.85444 47.6870 -2.55211 58.2948 ?04.11292
-50 3.08764 45.5104 -6.99997 62.9177 ?12.36930

þ25, þ10, 10, 25 and 50% taking one parameter at a (i) T  increases while ATCðT  Þ and q decrease with
time and keeping remaining parameters unchanged. The the increase in the value of the parameter hc . Here
analysis is based on Example 1 and the results are shown in T  , ATCðT  Þ and q are moderately sensitive to
Table 1. The following points are observed. changes in hc .

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Table 2 Effect of parameter l

l Change (%) in l T ATCðT  Þ q
on optimal policies
0.05 -87.5 2.61179(-4.62385%) 52.0100(?6.28189%) 54.0083(-3.54266%)
0.10 -75 2.62923(-3.98699%) 51.5283(?5.29754%) 54.2717(-3.07223%)
0.50 ?25 2.77639(?1.13869%) 48.1769(-1.55101%) 56.6143(?1.11159%)
1.00 ?150 2.97597(?8.67511%) 45.0588(-7.92281%) 60.0315(?7.21461%)
2.00 ?400 3.40395(?24.3039%) 41.4160(-15.3668%) 67.8973(?21.2627%)
3.00 ?650 3.82521(?39.6873%) 40.0379(-18.1830%) 76.1137(?35.9370%)
4.00 ?900 4.14838(?51.4886%) 39.9703(-18.3211%) 82.8513(?47.9702%)
4.10 ?925 4.16699(?52.1682%) 40.0065(-18.2471%) 83.2853(?48.7453%)
4.20 ?950 4.18098 ... ...
4.30 ?975 4.18921 ... ...
4.40 ?1000 1.42505 ... ...
4.50 ?1025 1.78138 ... ...
Here ‘. . .’ denotes the infeasible solution

(ii) T  , ATCðT  Þ and q increase with the increase in Conclusion

the value of the parameter co . Here T  , ATCðT  Þ
and q are highly sensitive to changes in co . In this paper, an EOQ inventory model is developed for a
(iii) T  and q decrease while ATCðT  Þ increases with deteriorating item with the two-staged demand rate, that is,
the increase in the value of the parameter dc . Here it is constant at first part of the cycle and linear function of
T  , ATCðT  Þ and q are moderately sensitive to time at the second part of the cycle. The reason for con-
changes in dc . sidering constant and time-dependent linear demand rate is
(iv) T  decreases while ATCðT  Þ and q increase with due to the newly launched products like new branded
the increase in the value of the parameter a. Here android mobiles, automobiles, garments, etc. The demand
T  , ATCðT  Þ and q are highly sensitive to for such products remains constant initially and then
changes in a. increases. When a new product is launched in the market,
(v) T  and q decrease while ATCðT  Þ increases with the demand for such product becomes constant for some
the increase in the value of the parameter b and h0 . time and after that the demand increases due to the popu-
Here T  , ATCðT  Þ and q have low sensitivity to larity of the product. Moreover, the time-proportional
changes in b and h0 . deterioration rate may be valid for the items whose dete-
(vi) T  and q increase while ATCðT  Þ decreases with rioration rate changes with respect to time. It is assumed
the increase in the value of the parameter l. Here that items do not deteriorate at the beginning of the period,
T  , ATCðT  Þ and q have low sensitivity to but after sometime, the deterioration rate increases with
changes in l. time. Deterioration rate is time-proportional. Shortages are
not allowed to occur. The optimal cycle time and the
From Table 2: It reveals that if the parameter l is
optimal order quantity have been derived by minimizing
decreased by 87:5%, then the value of the optimal cycle
the total average cost. A simple solution procedure is
time decreases by 4:62385%, the optimal average total cost
provided to illustrate the proposed model. The article is
increases by 6:28189% and the optimal order quantity
concluded with a numerical example and a sensitivity
decreases by 3:54266%. Further, if the parameter l is
analysis of various parameters to support the theoretical
increased by 925%, then the value of the optimal cycle
results.
time increases by 52:1682%, the optimal average total cost
The proposed model can be extended in several ways.
decreases by 18:2471% and the optimal order quantity
Firstly, we may extend the linear demand to a more gen-
increases by 48:7453%.
eralized pattern that fluctuates with time, price or stock-
The notable point is that the increase in the value of the
demand rate. This idea can be extended for stochastic
parameter l after l ¼ 4:10 gives infeasible solution as
demand pattern too. Secondly, we could extend the model
l [ T.

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462 J Ind Eng Int (2017) 13:455–463

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