Optimal lot sizing for deteriorating items with triangle-shaped demand and uncertain lead time

The ordering policy for retailers and the suppliers' system are influenced by lead time and deterioration. In this study, we consider deteriorating items with triangle-shaped demand and uncertain lead time. The triangle-shaped demand has the characteristic of increasing demand during the introduction season followed by decreasing demand immediately after the peak season. An algorithm is developed to derive a replenishment policy such that the expected unit time profit is maximised. A numerical analysis of the coordinated and noncoordinated policies are also presented for comparison. [Submitted 08 January 2008; Revised 15 May 2008; Revised 21 September 2008; Accepted 29 September 2008]