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Abstract

In this article we present a suitable EOQ Inventory model for deteriorating items having time dependent demand, allowing shortages. We have considered a variable deterioration rate which is sensitive to changes in time. The demand rate is assumed to be a quadratic function of time. The permitted shortages are considered to be partly backlogged. The backlogging rate is changing and reliant on the length of the following renewal. The mathematical formulation of the model is first developed and solved analytically to minimize the average inventory cost. Finally we have discussed the proposed model with a numerical example and analyzed its sensitivity to change in parameters.