Abstract
In this paper, the classical economic production quantity (EPQ) model is developed for non-instantaneous deteriorating items by considering a relationship between the holding cost and the ordering cycle length. Two models are developed. First, the proposed model is considered when backorders are not permitted and this condition is waived for the second case. The cost functions associated with these models are proved to be convex and an algorithm is designed to find the optimum solutions of the proposed model. Results show that the relationship between holding cost and ordering cycle length has a significant impact on the optimal lot size and total cost in the EPQ model. Numerical examples are presented to demonstrate the utility of the models.
Highlights
In recent years, inventory problems for deteriorating items have been widely studied
Some practitioners and researchers have questioned practical applications of classical economic production quantity (EPQ) models due to several unrealistic assumptions (Jaber et al 2004). This deficiency has motivated many researchers to modify the EPQ model to match real-life situations and this paper represents some real-life situations in which the holding cost can be taken into account for increasing the function of ordering cycle length
EPQ models for non-instantaneous deteriorating items are developed by considering a relationship between the holding cost and the ordering cycle length in two cases
Summary
Inventory problems for deteriorating items have been widely studied. Some practitioners and researchers have questioned practical applications of classical EPQ models due to several unrealistic assumptions (Jaber et al 2004) This deficiency has motivated many researchers to modify the EPQ model to match real-life situations and this paper represents some real-life situations in which the holding cost can be taken into account for increasing the function of ordering cycle length. This is true in the storage of non-instantaneous deteriorating and perishable items such as food products. Conclusions and future research topics are presented in Sect. ‘‘Conclusions and suggestions’’
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