We look at a supply chain inventory model with time-varying holding costs, price and stockdependent demand under a replenishment policy in this work. Both the length of non-deterioration time and the rate of deterioration are affected by preservation technology. We investigate two scenarios in this model: Shortages occur after or before the non-deterioration phase. In this paper, we show that for any given price and preservation investment policies, there exists a global replenishment policy. A numerical example is provided to explain the development model. In terms of important parameters, the optimum solution is also subjected to a sensitivity analysis.

Keywords : Time varying holding cost, price/stock dependent demand, replenishment rate, preservation technology, inflation.