Preservation technology investment policy-An inventory model with stock-dependent demand, time-varying holding cost and exponential partial backlogging

In this paper, an economic order quantity (EOQ) model is investigated for deteriorating items whose demand is influenced by stock. Deterioration rate is fixed and is controlled by using preservation technology. Inventory holding cost is a linear function of time. Shortage takes place at the end of the ordering cycle which is exponentially partially backordered in the next replenishment. Both the cases of partial backlogging and complete backlogging are studied and established with the help of suitable numerical examples. The purpose of this study is to obtain optimal replenishment and preservation technology investment policy together with optimal cycle length and shortage period by minimizing the average system cost.