Abstract： Based on the general inventory models with demand depending on the stock level of products, this paper develops a model to determine the retailer’s optimal ordering and replenishing policy for deteriorating products, considering the limitation of the display shelf and the difference of deteriorating rates between the warehouses and the display shelves. In addition, it deducts the optimal ordering and replenishing policy for nonperishable products. Moreover, it presents numerical examples to illustrate the models developed and reported the sensitivity analysis.