Economic Order Level Inventory Model with Exponential Increasing Demand

This paper presented an economic order level inventory model with exponential decreasing demand for deteriorating items. The shortage of items has been considered and optimized. A mathematical inventory model is suggested in the content for a business cycle which starts with shortage and able to place the order according to the demand and customer’s response. This model is applicable in various industries and may significantly increase their productivity and efficiency; this illustrates the effectiveness of model.