The present paper deals with a deterministic inventory model which follows the Gompertz distribution deterioration rate of items. Commodities such as fruits, vegetables and foodstuffs sufer from depletion by direct spoilage while kept in store. Holding cost is time dependent and demand rate is assumed as price dependent in linear form. Shortages are allowed and completely backlogged. Replenishment is instantaneous and lead time is zero. The model is solved analytically by maximizing the total profit. The results are illustrated with the numerical example and also shown by graphically. The sensitivity of the solution with the changes of the values of the parameters associated with the model is discussed.

In this paper, we have developed a deterministic inventory model for deteriorating items which follows Inverse chain distribution function. Demand rate is taken as a function of selling price. Also, time varying holding cost is taken in to account. Shortages are allowed here and are partially backlogged. The model is illustrated with the help of numerical example and verified graphically. The sensitivity analysis is also carried out based on numerical example.