A Computational Approach to EOQ Model with Power-Form Stock-Dependent Demand and Cubic Deterioration

The problem of deterioration in an EOQ model plays a significant role in the field of inventory control and management. In this paper, an attempt has been made to develop an inventory model for deteriorating items with uniform replenishment rate with power form demand and without shortages. The rate of deterioration is a cubic polynomial as a function of time. A total cost function is constructed and a computing algorithm is developed to find the solution of non-linear problem of constrained optimization. Numerical demonstration and sensitivity analysis have been carried out for the model to identify the sensitive parameters in the systems which have differential variations with total optimal average cost as an important performance measure of the system.