Optimal Ordering Decision for Decaying Items with Season Pattern Demand and Lead Time

In this chapter shortage is allowed, lead-time is considered and seasonal pattern demand is taken in consideration. Here we discuss a model in which the retailer’s and supplier’s ordering policy is a function of deterioration, capital constraint, supplier’s uncertain lead time, expiration date of product and the retailer’s seasonal pattern demand. Here, we developed a deteriorating inventory model for the products which deteriorate very fast and presented an algorithm to derive the supplier’s managing cost, economic order quantity, shortage period and the retailer’s optimal replenishment cycle