Inventory model of deteriorated items with a constraint: A geometric programming approach

An inventory model for deteriorating items is built-up with limited storage space. Here, demand rate for the items is finite, items deteriorate at constant rates and are replenished instantaneously. Following EOQ model, the problem is formulated with and without truncation on the deterioration term and ultimately is converted to the minimization of a signomial expression with a posynomial constraint. It is solved by modified geometric programming (MGP) method and non-linear programming (NLP) method. The problem is supported by numerical examples. The results from two versions of the model (with and without truncation) and two methods (i.e. MGP and NLP) are compared.