A Partial Backlogging Inventory Model with Time-Varying Demand During Shortage Period

Harris's classic square root economic order quantity (EOQ) model forms the basis for many other models that relax one or more of its assumptions.A key assumption of the basic EOQ model is that stockouts are not permitted.Due to the excess demands, stock-out situations may arise occasionally.Sometimes, shortages are permitted and they are backordered and satisfied in the very next replenishment.Therefore the objective of this paper is to develop a partial backlogging inventory model, and proposes a new algorithm to minimize the total cost, at the same time also propose the prediction method and algorithm of ordering period.Finally, a practical example of the numerical analysis is given.