EFFECTS OF INFLATION AND TIME-VALUE OF MONEY ON AN INVENTORY MODEL WITH LINEAR TIME-DEPENDENT DEMAND RATE AND SHORTAGES

In the present paper an attempt has been made to investigate the effects of inflation and time-value of money on an inventory model with linear time-dependent demand rate. Shortages are allowed in this model. The model developed in this article is a finite-horizon (T, S(i)) policy inventory model. To the best of the authors knowledge, such type of inventory model has not been considered earlier. A numerical example has also been given to illustrate the developed model.