An EPQ Model for Linear Deteriorating Item with Variable Holding Cost

This paper deals with development of an EPQ model for items with linear deterioration rate where the production and demand rate are considered to be constant. Holding cost is considered to vary with time. Completely deteriorated units which are not suitable for marketing are discarded where as partially deteriorated items are allowed to float into the market with a discount. Shortages are not allowed in this model. Optimal cycle time, holding cost and total variable cost for this model have been derived and the results are illustrated with the help of numerical example and a sensitivity analysis at the end.