An Economic Order Quantity Model for Ameliorating Items with Linear Demand and Shortage

In this research, we developed an economic order quantity model for ameliorating items where the demand is linear with shortage. Fruits, farm produce, poultry, fish etc, provide good examples for such items. When these items are in the production centre or taken to the sales counter, they incur increase in weight or utility due to growth and at the same time may deteriorate in value due to disease. An economic order quantity (EOQ) model for such items is hereby formulated. The model determines the best cycle length so as to minimize the overall cost. Fruit merchants, poultry managers, etc, could use the model. Numerical examples are given to illustrate the model.