Model for inventory having variable ordering and holding costs with salvage value.

Inventory models for worsening objects are constructed when the demand amount is projected to be a quadratic function of the period, and the worsening rate is proportional to the period. When shortages are tolerated, the problem is resolved. Costs of holding and ordering are variables. Items in the system that have deteriorated are given the salvage value. The sensitivity of the models is discussed using a numerical example. [ABSTRACT FROM AUTHOR]