We look at a supply chain inventory model
with time-varying holding costs, price and stockdependent demand under a replenishment policy in this
work. Both the length of non-deterioration time and the
rate of deterioration are affected by preservation
technology. We investigate two scenarios in this model:
Shortages occur after or before the non-deterioration
phase. In this paper, we show that for any given price
and preservation investment policies, there exists a
global replenishment policy. A numerical example is
provided to explain the development model. In terms of
important parameters, the optimum solution is also
subjected to a sensitivity analysis.
Time varying holding cost, price/stock dependent demand, replenishment rate, preservation technology, inflation.