Niketa J. Mehta and Nita H. Shah*
Department of Mathematics, Gujarat University, Ahmedabad - 380 009
A lot-size inventory model for deteriorating items is derived with exponentially increasing demand. The model starts with an instantaneous replenishment and ends with no shortages in last cycle. The total relevant cost for this model is a convex function of the replenishment number. Sensitivity analysis of the optimal solution with respect to the parameters of the system is carried out with the help of a numerical example.
Key words: Deterioration, inventory, lot-sizing, shortages.