An EPQ model for delayed deteriorating items with reliability consideration and quadratic demand (Q2247424)

Summary: In this paper, an EPQ model for delayed deteriorating items is developed where the demand before deterioration sets in is assumed to be different from that after deterioration sets in. There are three stages for the inventory system as follows: (1) the production build-up stage \((0 \leq t \leq L_1)\); (2) stage before deterioration sets in \((L_1 \leq t \leq L_2)\); (3) stage after deterioration sets in \((L_3 \leq t \leq L)\). It is also assumed that the unit cost of production is directly proportional to the process reliability and inversely proportional to the rate of demand and shortages are not allowed. A numerical example is given to illustrate the developed model and sensitivity analysis carried out on the example to see the effect of parameter changes.