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In this paper proposes an EOQ mathematical model for deteriorating items during the inventory process. The model is developed with exponentially decreasing demand, constant deterioration, and allowing for shortages. The time-varying holding cost is a linear function of time. The ordering cost, the holding cost, the deteriorating cost, and the shortage cost are considered in the inventory management. A numerical example is presented to illustrate the model and the sesitivity analysis of various parameters is carried out.