ABSTRACT
This chapter illustrates several replenishment techniques under different environments. It discusses the replenishment technique for product with increasing demand rate and decreasing cost structures. The chapter examines an inventory strategy when there is a temporary discount in the sale price and a production lot size model for deteriorating inventory with time-varying demand. Classical economic order quantity technique assumes a constant demand rate and the existence of constant cost parameters. The chapter provides a simple procedure is developed to determine the economic order policy for a new product that is replacing the existing one due to its lower cost and better functions. It explores the inventory model developed two effects: temporary price discount, and deterioration of items. An inventory model with a temporary price discount purchase has been developed for items that deteriorate continuously with time. With the rapid changes in technologies and market conditions since the industrial revolution, the demand and the value of consumer goods varies drastically with time.
