Title: A note on an EOQ inventory model with varying time-dependent demand and shortages under the conditions of delay in payment

Authors: Trailokyanath Singh; Itishree Rout; Ameeya Kumar Nayak

Addresses: Department of Mathematics, C.V. Raman Global University, Bhubaneswar – 752054, India ' Department of Mathematics, C.V. Raman Global University, Bhubaneswar – 752054, India ' Department of Mathematics, IIT Roorkee, Roorkee – 247667, India

Abstract: In most of the classical inventory models, only demand is considered as the main factor for formulating the model. However, demand and deterioration are two main competitive factors that are necessary to represent any inventory model for deteriorating items. In this paper, an EOQ model has been framed to study the items over a finite time horizon with the following characteristics: 1) delay in payment is permitted; 2) demand is time-dependent quadratic function of time; 3) grace period for settling the account is known; 4) shortages in the system are fully backlogged. The formulation of the model is derived under case 1 - the grace period is less than shortage period and case 2 - the grace period is greater than shortage period of the inventory system. Finally, a couple of numerical examples and sensitivity analysis of the optimal solution with respect to different parameters of the model are presented.

Keywords: constant deterioration rate; deteriorating items; economic order quantity; permissible delay in payments; shortages; time-dependent quadratic demand.

DOI: 10.1504/IJMOR.2026.152956

International Journal of Mathematics in Operational Research, 2026 Vol.33 No.4, pp.465 - 488

Received: 17 Jan 2024
Accepted: 30 May 2024
Published online: 17 Apr 2026 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article