Abstract
In recent times, in the literature of inventory management there exists a notorious interest in production-inventory models focused on imperfect production processes with a deterministic time horizon. Nevertheless, it is well-known that there is a high influence and impact caused by the learning effect on the production-inventory models in the random planning horizon. This research work formulates a mathematical model for a re-workable multi-item production-inventory system, in which the demand of the items depends on the accessible stock and selling revenue. The production-inventory model allows shortages and these are partial backlogged over a random planning horizon. Also, the learning effect on the rework policy, inflation, and the time value of money are considered. The main aim is to determine the optimum production rates that minimize the expected total cost of the multi-item production-inventory system. A numerical example is solved and a detailed sensitivity analysis is conducted in order to study the production-inventory model.
Highlights
This paper develops a multi-item non-perfect production-inventory model with partial backlogging over a finite time horizon in random nature
The business period is completed after production run time but before shortage period which is shown by Figure 3
The learning effect phenomenon is introduced in order to reduce the number of breakable items for the cycle
Summary
Publisher’s Note: MDPI stays neutral with regard to jurisdictional claims in published maps and institutional affiliations. Developed a deteriorating inventory model with stock and price dependent demand for multi-items under the trade-credit policy. Fu et al (2020) considered learning and fatigue behavioral effects for a labor-intensive production-inventory system It is well-known that there exists an impact of increasing of prices in the time value of money in today’s monetary market. Shaikh et al (2020) investigated the effect of inflation and price-dependent demand in a production model for a deteriorating item under trade credit policy. This paper develops a multi-item non-perfect production-inventory model with partial backlogging over a finite time horizon in random nature. The work is done thru of the following steps: Step 1 Formulate the imperfect production-inventory model for first N j fully accommodated cycles considering production, screening, reworking, holding, and shortage costs.
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
