An EOQ Model with Price Dependent Demand and Partially Backlogging Shortages with Salvage Cost

Abstract

This paper deal with deterministic inventory model for deteriorating item with shortages that are partially backlogging and salvage cost is associated to the deteriorating items. This model discusses about the demand rate which is price dependent with the negative power of constant. The holding cost and the deterioration cost is both time dependent. To represent the solution and application of the model, numerical analysis has been provided. By finding the minimum value for the total cost, the model is solved. To represent the model well a sensitivity analysis is discussed for the effect of changes of the parameters