A replesnishment policy for deteriorating items under inflation with ramp type demand rate and partial exponential type backlogging

In this paper, we develop an order-level inventory system for deteriorating items under inflation with ramp type demand function and partial exponential type-backlogging function of time. Three costs are considered under inflation as significant: deterioration, holding, shortage. The backlogging rate is an exponentially decreasing, time-dependent function specified by a parameter. For this model we derive results, which ensure the existence of a unique optimal policy and provide the solution procedure for the problem. The method is illustrated by numerical example, and sensitivity analysis of the optimal solution with respect to the parameters of the system is carried out.