Optimal Replenishment Problem for Items withPolynomial Demand During Their Life Period

In this paper, a deterministic lot-sizing model is developed for an item during its lifeperiod. A demand for the item is approximated by a special polynomial function. And shortages areallowed to occur in the proposed model. A simple dynamic programming method is presented forgenerating the optimal replenishment policy. A numerical example is used to illustrate the solutionprocedure for the special case with quadric demand. Sensitivity analysis for parameters is alsoincluded.