An Inventory Model for Intangible Deteriorated Items with Demand-Dependent Deteriorating Rate

An inventory model has been proposed for intangible deteriorating items with demand-dependent deteriorating rate under the circumstance in which the demand rate is changing exponentially with time. The production rate is the function of demand rate and inventory level and shortages are not allowed in the inventory model. This inventory model is suitable for the situation in which the deterioration is intangible and the demand rate is changing exponentially with time. The total average inventory cost is derived and the optimal expression can be obtained for production scheduling period, maximum inventory level, total average cost and the cycle time of inventory replenishment in this paper. At last, numerical examples are performed and discussed.