An EOQ model for deteriorating items with a linear trend in demand and shortages in all cycles

We consider here the inventory replenishment problem over a finite time horizon for a deteriorating item with a linear trend in demand, equal replenishment cycles and shortage in every cycle. The reorder number, the interval between two successive reorders and the shortage intervals are all determined in an optimal manner so as to minimize the average system cost. The advantage of allowing shortage in all cycles is illustrated with a numerical example.