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Inventory level in production quantity model has been developed for items that deteriorate contin· uous1y in accordance with a general probability distribution under Last In First Out (UFO) issuing policy. From the result developed, the earlier model by Misra for constant rate of deterioration can be obtained as a particular case. An approximate formula is derived using perturbation techniques. To illustrate the use of the formula an example problem is solved and an approximate optimum production quantity is found.

AN EPQ MODEL FOR DETERIORATING ITEMS UNDER LIFO POLICY