Huang and Hsu (2008) investigated the inventory system as a cost minimization problem, with the objective to determine the retailer’s optimal inventory policy under the supply chain conditions. Then, Chung (2008) presented the comments to this problem, with the aim to overcome the shortcomings and present complete proofs for the results, relative to Huang and Hsu (2008). However, the proof, proposed by Chung is cumbersome, and can be followed with difficulty. The main purpose of this paper is to develop another proof, much more easy to comprehend.
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This paper proposes to present a general inventory model with due consideration to the factors of time dependent partial backlogging and time dependent deterioration. It also takes into account the impact of inflation, time-dependent demand and permissible delay in payments.
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