Model for High‐Tech Materials with Exponential Demand, Time‐Varying Holding Costs, and Constant Deterioration Rate

Abstract The authors develop an inventory model for high‐tech materials like those used in smartphones and electronics, and so on, where demand grows exponentially and the deterioration rate is constant. Holding costs increase linearly with time, and shortages are managed with partial backlogs. Their primary aim is to maximize total profit through this model, analyzing how changes in parameter values impact this objective. A numerical example illustrates sensitivity analysis, with graphs showing the connections among model parameters, economic order quantity (EOQ), optimal timing, and total profit.