An EPQ Model for Deteriorating Items with Probabilistic Demand and Variable Production Rate

摘要

In this paper, we have developed a production inventory model for deteriorating items with variable production rate. In reality it is observed that at the beginning of any production process, the rate of production in any manufacturing firm remain almost static up to certain time, but after that the production rate follows a decreasing trend due to some inherent problems, like machinery fault, lethargy of the personnel for continuous work, delaying in the supply of raw materials etc. So, in this model, we have considered variable production rate. Moreover, the demand for the items is assumed as probabilistic. Under these circumstances, a cost function of the model has been formulated. Finally, the proposed model has been demonstrated taking numerical examples and the sensitivity analysis of the optimal solution is provided with respect to key parameters of the system.