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Conceptually,traditional economic order quantity (EOQ)model
on various applications is very convenient;but in the real
world is not.As vaporous substances suck as coal oil and
alcohol,the phenomenon of deterioration is occurred in many
carrying processes of inventory.In this situation, inwentory
level will be decreasing speedily.Again,the demands of market
are not a constant.During the shortage period,the market doesn't
allow full backlogging,and the consumers may buy this good
from others.Thus, it causes opportunity cost.These chances of
the costs will effect total cost directly. Due to the
factors affected,the complications are added while we make an
inventory strategy.The purpose of this paper focuses on how to
balance order frequency and service level to minimize total
cost. In this paper,we present a (T,Si) deteriorating
inventory model that considers the relationship between the
backorders and inventory level during the shortage period.Not
only considering the exponential demand and the deteriorating
items,but also considering the opportunity lost cost in the
shortage period,and then we find a best order strategy to
minimize the total cost.
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