An economic production lot size model with deteriorating items, stock-dependent demand, inflation, and partial backlogging

Abstract

In this paper, we present an optimization framework to derive optimal production over a fixed planning horizon for items with a stock-dependent demand rate and under inflationary conditions. We consider a perishable item that follows a two-parameter Weibull distribution. Shortage is allowed and partially backlogged at a fixed rate. A numerical example is taken up to illustrate the solution procedure and sensitivity analysis of the optimal solution with respect to the parameters of the system is carried out.