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This article deals with an economic order quantity model for non-instantaneous deteriorating items with price and advertisement dependent demand pattern. The salvage value for deteriorating items is considered in this model. Shortages are allowed and partially backlogged. The backlogging rate depends upon the waiting time for the next replenishment. A mathematical model is framed to obtain the optimal replenishment policy which aids the retailer to minimize the total inventory cost. The necessary and sufficient condition for the existence and uniqueness of the optimal solution are also derived with useful theoretical results. Numerical examples are provided to illustrate the results obtained. Sensitivity analyses are carried out. The managerial implications and the effects of key parameters are studied to analyze the behavior of the model.

Optimal Lot Sizing Policy for Non-instantaneous Deteriorating Items with Price and Advertisement Dependent Demand Under Partial Backlogging