A Deterministic Inventory Model of Deteriorating Items with Two Rates of Production, Shortages, and Variable Production Cycle

Abstract EN

A Continuous production control inventory model is developed for a deteriorating item having shortages and variable production cycle.

It is assumed that the production rate is changed to another at a time when the inventory level reaches a prefixed level Q1 and continued until the inventory level reaches the level S(>Q1).

The demand rate is assumed to be constant, and the production cycle T is taken as variable.

The production is started again at a time when the shortage level reaches a prefixed quantity Q2.

For this model, the total cost per unit time as a function of Q1, Q2, S, and T is derived.

The optimal decision rules for Q1, Q2, S, and T are computed.

The sensitivity of the optimal solution towards changes in the values of different system parameters is also studied.

Results are illustrated by numerical examples.