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

摘要

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 levelQ1and continued until the inventory level reaches the levelS(>Q1). The demand rate is assumed to be constant, and the production cycleTis taken as variable. The production is started again at a time when the shortage level reaches a prefixed quantityQ2. For this model, the total cost per unit time as a function ofQ1,Q2,S, andTis derived. The optimal decision rules forQ1,Q2,S, andTare 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.